HNIs, retail, employee quota remained undersubscribed
The initial public offer (IPO) of Delhivery received bids for 10,17,04,080 shares as against 6,25,41,023 shares on offer. The issue was subscribed 1.63 times.
The qualified institutional buyers (QIBs) category was subscribed 2.66 times.
The retail investors category was subscribed 57%, the non institutional investors category was subscribed 30% and the employees category was subscribed 27%.
The issue opened for bidding on Wednesday (11 May 2022) and it closed on Friday (13 May 2022). The price band of the IPO was fixed at Rs 462-487 per share.
The initial public offer comprised a fresh issue of equity shares aggregating up to Rs 4,000 crore and offer for sale (OFS) of shares aggregating to Rs 1,235 crore by the selling shareholders.
Of the total proceeds from fresh issue (net of issue costs), about Rs 2000 crore will be utilised to fund organic growth initiatives, Rs 1000 crore to fund inorganic growth through acquisitions and other strategic initiatives and balance towards general corporate purposes.
Ahead of the IPO, Delhivery on Monday, 9 May 2022, finalized allocation of 4,81,87,860 equity shares to anchor investors at an allocation price of Rs 487 per share, aggregating to Rs 2,346.74 crore.
Delhivery is a fully integrated logistics player in India providing a full range of logistics services, including express parcel and heavy goods delivery, part truckload freight, truckload freight, warehousing, supply chain solutions, cross border express and freight services. Apart from this it also offers supply chain software and value-added services, such as e-commerce return services, payment collection and processing, installation and assembly services and fraud detection.
The business model of the company is asset light, wherein it extends its logistics ecosystem by enabling network partners, such as franchisees, retail partners and delivery agents, to on board their physical assets and resources and participate in its platform.
End of December 2021, it had built a nation-wide network with presence in every state, servicing 17,488 pincodes (covering 90.61% of total 19,300 pincodes in India).
The company had recorded a net loss of Rs 891.14 crore and sales of Rs 4810.53 crore in the nine months ended on 31 December 2021.
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