The initial public offering (IPO) of supply chain company Delhivery will open on Wednesday, May 11, 2022, and close on May 13. Before heading into the IPO, the bidding for anchor investors will open on Tuesday, May 10, 2022. The firm will list on exchanges on May 24.
Earlier, the company had reduced its total issue size to Rs 5,235 crore from the Rs 7,460 crore planned. The firm will now raise Rs 4,000 crore via the fresh issue and Rs 1,235 crore through an offer for sale (OFS).
Delhivery co-founders Kapil Bharati, Mohit Tandon, Y Suraj Saharan, and Mohit Tandon will participate in the OFS. Also, CA Swift Investments, SVF Doorbell (Cayman) Ltd, Deli CMF Pte Ltd, and Times Internet will divest their shareholding in the logistics company.
Delhivery co-founders will also participate in the OFS. Kapil Bharati will sell shares worth Rs 5 crore, Mohit Tandon will sell shares worth Rs 40 crore and Suraj Saharan is selling up to Rs 6 crore worth of shares.
Other Details of IPO
Delhivery has fixed a price band of Rs 462-487 per share for its Rs 5,235-crore IPO. Logistics services player Delhivery will issue and sell shares of the face value of Re 1 each. The IPO will open on 11 May for subscription and close on 13 May.
The sharp fall, as well as the price band, has unsettled investors who acquired stock from the unlisted market, analysts said.
Trading volume in Delhivery shares in the unlisted market has been low from the beginning because of its expensive valuation, which kept investors away, the analysts said.
The offer for sale (OFS) portion has been reduced to Rs 1,235 crore from Rs 2,460 crore. Upon successful listing on BSE, NSE, Delhivery will join the likes of Blue Dart Express, TCI Express, and Mahindra Logistics.
The investors can bid for a minimum of 30 shares and in its multiple thereafter. The company has allocated shares worth Rs 20 crore to eligible employees, who will get a discount of Rs 25 per equity share during the bidding process.
The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs). Whereas non-institutional buyers (NICs) will get a 15 per cent allocation. The remaining 10 per cent shares will be available for retail bidders.
Investors expected the IPO to be at a lower valuation compared to that in the unlisted market and preferred to wait for the share sale rather than buy the stock in the unlisted space.
Sentiment on new-age companies has also drastically changed after the failure of some start-up IPOs last year, analysts added.
“There was robust demand for Delhivery’s unlisted shares last year when they were not available, and now when the shares are trading in the unlisted space. The demand is completely lacking,” said Manan Doshi, co-founder, of UnlistedArena.com, which deals in unlisted and pre-IPO shares.
