Delhivery, which is a supply chain company, has received capital market regulator, SEBI’’s approval to release ₹7,460 crores via an IPO (initial public offering). In this article, we will be discussing everything we know about the latest Delhivery IPO.
Delhivery IPO: The Initial Stage
The Delhivery IPO consists of fresh issuance of the equity shares that are worth ₹5,000 crores and also an OFS (offer for sale) element that is worth ₹2,460 crores by the prevailing shareholders, as per the DRHP (draft red herring prospectus). The Delhivery IPO valuation is expected to be around $5-5.5 billion.
Under the offer for sale, investors SoftBank and Carlyle Group along with the co-founders of Delhivery will dispose of their shareholdings in the logistic company. The entity that filed its initial public offering papers with the Securities and Exchange Board of India (SEBI) in November, gained its observations letter on 13 January 2022, as shown by an update from the regulator.
Shareholders Of Delhivery And Their Portions Of Shares
In the statement by SEBI, the issuance of an observation letter indicates its go-ahead for the IPO. As per the draft papers, CA Swift Investments which is a company of Carlyle Group will share their part of shares to the tune of ₹920 crores, SVF Doorbell (Cayman) Ltd, which is an arm of the Softbank Group, will sell shares that are worth ₹750 crores, Times Internet will sell shares worth ₹330 crores, and Deli CMF Pte Ltd, a completely owned branch of private equity fund China Momentum Fund, will sell shares that are worth ₹400 crores.
Along with that the co-founders of Delhivery, Mohit Tandon, Kapil Bharati, and Suraj Saharan will sell shares that are worth ₹40 crores, ₹14 crores, and ₹6 crores, respectively. Presently, SoftBank owns a 22.78% stake, and China Momentum Fund has a 1.11% stake in the company.
Tondon has 1.88%, Bharati owns 1.1%, and Saharan owns a 1.79% stake in the entity. Proceeds of the latest issue will be used for the purpose of funding organic growth initiatives, funding inorganic growth via acquisitions and other strategic plans, and for general corporate purposes. The e-commerce logistics company functions as a pan-India network and offers services to close to 17,045 postal index number (PIN) codes, as of June 30, 2021.
It offers supply chain solutions to a wide base of 21,342 active users, like direct-to-consumer e-tailers, e-commerce marketplaces, and enterprises and SMEs throughout several verticals like consumer durables, FMCG, consumer electronics, retail, lifestyle, automotive, and also manufacturing.
BofA Securities India, Kotak Mahindra Capital Company, Citigroup Global Markets India, Morgan Stanley India Company are the book-operating lead managers to the Delhivery IPO.
Now coming to the Delhivery funding history. In May 2021, Delhivery had declared that it had raised USD 275 million in its primary funding round, which was conducted by Fidelity Management and Research Company. With this raised capital, the valuation of Delhivery was expected to increase to more than USD 3 billion. The total Delhivery market share is 20% of complete e-commerce volumes. As of now, there is no intimation about the Delhivery IPO price or even the Delhivery IPO GMP.
E-commerce logistics company Delhivery is known to have got the approval from the capital market regulator SEBI for its proposed IPO (Initial Public Offering) worth Rs 7,460 crore. The dates for the Delhivery IPO have not yet been released and this is the same for the lot size. And also as of now, the company has not released any official statement speaking about its latest IPO.