Logistics Supplier Firm Delhivery IPO Opens On Wednesday | Check Details Here

Delhivery IPO: The lead managers to the issue are Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company, and Citigroup Global Markets India

Delhivery’s grey market premium of the company’s shares has dipped to Rs 7-8 apiece from Rs 35-40 on May 4. Image: Getty

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New Delhi: Logistics supplier firm, Delhivery, will launch its initial public offering (IPO) on Wednesday (May 11).   

The subscription will close on Friday (May 13).

The company has said that it will the use the proceeds from the issue to fund company’s organic and inorganic growth initiatives through acquisitions and other strategies.

According to news reports, Delhivery’s grey market premium of the company’s shares has dipped to Rs 7-8 apiece from Rs 35-40 on May 4.

The lead managers to the issue are Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company, and Citigroup Global Markets India.

Earlier, e-commerce logistics firm pared the size of its IPO to Rs 5,235 crore from Rs 7,460 crore. It will fetch Rs 4,000 crore through a fresh issue of shares. The offer for sale (OFS) by existing shareholders is expected to raise Rs 1,235 crore.

Allotment of shares to successful applicants will be on May 19 and their accounts will be credited on May 23, a day before they are listed on the stock exchanges.

To date, Delhivery has never logged a profit, according to its share-sale prospectus. The logistics firm made a loss of Rs 891.14 crore for the nine months ended December 2021 and reported a Rs 415.7 crore loss in FY21. The company’s revenue was Rs 4,911 crore in the nine months ended December and Rs 3,838 crore in FY21.

The co-founders of the firm – Kapil Bharati, Mohit Tandon, and Suraj Saharan – will dilute their stakes of Rs 5 crore, Rs 40 crore, and Rs 6 crore, respectively.

By revenue, Delhivery is the largest fully integrated logistics services firm in the country.

The start-up provides pan-Indian service in 17,045 postal index number (PIN) codes.

The Gurugram-based company became a unicorn, valued at over $1 billion, when it raised $413 million in a Series F round led by SoftBank Vision Fund in 2019.