IPO of Delhivery raises Rs 2,346 crore from anchor investors today

0 44

The initial public offering of logistics services company Delhivery was subscribed 4% on the first day of bidding against an IPO size of 6.25 crore shares.

Delhivery, a logistics company, raised Rs 2,346 crore from 64 anchor investors on Tuesday. The Gurugram-based company issued approximately 48.2 million shares at a price of Rs 487 each, the top of its IPO price range. According to sources, the anchor book saw approximately ten times more demand than the available shares.

Among the anchor investors who received an allotment were Amansa, Goldman Sachs, Aberdeen, Tiger Global, Schroder, and Baillie Gifford. Seven domestic mutual funds (MF) made 15 distinct schemes investments. The allocation granted to them accounted for 30% of the anchor book. Domestic funds that received an allotment were SBI MF and HDFC MF.

The IPO size of Delhivery is Rs 5,235 crore, making it the second-largest this year after LIC. The IPO’s price range is Rs 462 to Rs 487 per share. On a post-diluted basis, Delhivery will have a market capitalization of Rs 35,284 crore. The IPO is expected to raise Rs 4,000 crore in new capital for Delhivery. The remaining Rs 1,235 crore will be sold through an offer for sale (OFS) to investors, including Carlyle and Softbank.

The proceeds from the offering will be used to fund organic growth efforts such as ramping up existing and adjacent business lines. The funds would be used to fund inorganic growth of Rs 1,000 crore. To fuel expansion, the company has made over half a dozen strategic agreements and acquisitions in the last five years.

The total addressable market (TAM) of Delhivery is above $300 billion. However, it only has a 5% market share, highlighting the substantially unrealized potential.

India’s logistics market is currently huge and extremely fragmented. The surge in the digital and e-commerce sectors is likely to fuel this sector’s expansion. According to the company’s investor presentation, India’s per capita direct logistics spend is only $150 per dollar, compared to $4,460 in the US and $1,050 in China.

The company’s initial public offering begins on Wednesday and ends on Friday.

Contact us with your feedback and suggestions.

Leave A Reply

Your email address will not be published.