Delhivery IPO: Here are the Key Highlights

Delhivery is a Gurugram-based unicorn company that provides a full range of logistics services

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After the LIC IPO, the most-awaited IPO was that of the logistics unicorn Delhivery. The Gurugram-based company provides an array of logistics services including express parcel delivery, heavy goods delivery, warehousing, supply chain solutions, cross-border express and freight services and supply chain software. It also offers value added services such as e-commerce return services, payment collection and processing, installation and assembly services.

Canva

According to the company’s draft red herring prospectus (DRHP), it provides services in 17,488 PIN codes in the country as of the quarter ended December 2021. The company filed its draft prospectus in November 2021.

In January, Securities and Exchange Board of India’s (Sebi) gave approval to raise INR 7,460 crore through an IPO. However, the IPO size was cut from INR 7,460 crore to INR 5,235 crore. It thus now comprises fresh issuance of equity shares worth INR 4,000 crore and an offer for sale (OFS) component of INR 1,235 crore by existing shareholders.

The INR 5,235 crore IPO of the supply chain firm was open for subscription from May 11, 2022 and will be available till May 13, 2022. The price band for the offer has been fixed at INR 462-487 per share with a face value of INR 1 per share. The share allotment will be done on May 19.

Status

The logistics unicorn's IPO was subscribed 21 percent against the IPO size of 6.25 crore shares on day one and on day two of the bidding, it was subscribed 23 per cent.

The report also said that the retail bidders portion was subscribed 35 per cent and the institutional investors' quota 29 per cent. The employee portion was subscribed nine per cent and the portion of HNI investors had not attracted any bids so far.

Delhivery has reserved a total of 75 per cent of the net offer for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers (NIIs) and 10 per cent of shares for retail bidders. Further, the startup has reserved shares worth INR 20 crore for employees at a discount of INR 25 to the final offer price.

Anchor investors

The company, looking to raise INR 5,235 crore through the IPO, had raised INR 2,347 crore from 64 anchor investors including Tiger Global, Bay Capital, Steadview, Fidelity, others on Tuesday. Other foreign investors include Amansa, Aberdeen Standard Life, GIC, Government Pension Fund Global and Invesco Hong Kong Baillie Gifford, Schroders.

Domestic mutual funds such as HDFC, SBI, ICICI Prudential, Franklin Templeton, Invesco, Nippon and Mirae also participated in it. The logistics company plans to utilize the funds raised from IPO for organic growth initiatives. And, it will also be allocating funds for inorganic growth through acquisitions and strategic initiatives and for corporate purposes.