According to investment bankers familiar with the arrangements, logistics operator Delhivery expects to undertake its initial public offering (IPO) in the June 2022 quarter.
The Gurugram-based firm submitted its draught red herring prospectus with the Securities and Exchange Board of India in November (Sebi). The IPO was approved by Sebi in January.
After a record-breaking 2021, the IPO market has been roiled by difficult market conditions caused by the US Federal Reserve’s hawkish turn and Russia’s invasion of Ukraine.
“The market has seen an improvement in the past one week amid talks of ceasefire between Russia and Ukraine. If market conditions improve, we can see large issuances as Delhivery launch their share sale “asserted a banker In the last week, four initial public offerings (IPOs) have been announced, compared to only three in January and February.
The IPO for Delhivery is expected to be worth roughly Rs 7,000 crore. In terms of revenue, it is India’s largest multimodal, fully integrated logistics and supply-chain company (FY21 basis).
In a recent statement, brokerage Motilal Oswal stated that the domestic logistics sector provides a substantial addressable opportunity, with annualized growth of 9% to $365 billion expected between FY20 and FY26. The organized players are expected to develop faster because of their “relentless focus on technology and automation,” according to the report.
The logistics market is now highly fragmented, with structured firms accounting for less than 4% of the market. According to Motilal Oswal, the transition from the unorganized to the organized sector is already begun.
With the implementation of GST, demand for national, integrated supply chain service providers with integrated warehousing and transportation models increased, allowing customers to scale operations at lower fixed costs while creating opportunities for optimizing footprints and capacity utilization, reducing inventory, and delivering faster and cheaper fulfillment.
Delhivery has an asset-light business strategy, a wide customer base, and advanced network infrastructure, according to the brokerage.
Delhivery, according to Motilal Oswal, has patented technology solutions that allow it to provide integrated logistics services to a wide range of customers. Its technology stack comprises more than 80 applications that cover all aspects of the supply chain.
Delhivery is a delivery and e-commerce logistics company based in India. Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati created it in 2011. Carlyle Group, Tiger Global, Fosun International, SoftBank Vision Fund, Nexus Venture Partners, Multiples, and the CPP Investment Board are among the company’s investors.
The Gurugram-based firm has over 80 fulfillment centers, 21 automated sort centers, and 86 gateways.
