India’s largest fully integrated logistics company, Delhivery’s IPO, is likely to open for subscription on May 11 and close on May 13. Further, the basis for allotment will be on May 19 and the shares will be credited to the Demat account on May 23.
The firm will list on exchanges on May 24. Delhivery plans to open the issue next week after a positive response to recent IPOs of Rainbow and Campus, which made investment bankers confident of generating a good response, sources have said.
The logistics unicorn held a board meeting on Saturday to discuss the timeline for its IPO. The board has cleared the plan with the offer launching right after the closure of the LIC IPO. Incidentally, LIC IPO’s subscription window closes on May 9.
“The idea is to open the subscription window after LIC so institutional investors can finalize allocations for Delhivery IPO basis the allotments they get for LIC,” a source cited by an ET report said.
The Gurugram-based unicorn had originally filed its DRHP filing with plans to raise a total of INR 7,460 Cr. Its offer comprises a fresh issue of INR 5,000 Cr and an INR 2,460 Cr offer for sale (OFS) by existing shareholders, including a share sale of up to INR 750 Cr by SoftBank.
Global private equity firm Carlyle may reduce its offer for sale portion to around Rs 500 crore from Rs 920 crore earlier, while SoftBank may reduce it to Rs 400 crore from Rs 750 earlier, according to bankers.
Delhivery plans to open the issue next week after a positive response to recent IPOs of Rainbow and Campus, which made investment bankers confident of generating a good response, a source knowing the development said.
Kotak Mahindra Capital, Morgan Stanley, BofA Securities, and Citigroup are the issues’ bankers.
With a 22.78 per cent stake, SoftBank Holding is the largest shareholder in the company, while Nexus Ventures and CI Swift Holdings (Carlyle) hold a 9.23 per cent and 7.42 per cent stake. Kapil Bharati holds 1.11 per cent, Mohit Tandon owns 1.88 per cent, and Suraj Saharan has a 1.79 per cent stake.
As a part of its plan to go public, the logistics major appointed three industry veterans as independent directors. This includes Kalpana Morparia, the former chairman of JP Morgan South and Southeast Asia, Romesh Sobti, former CEO and managing director of Indusind Bank; and Saugata Gupta, CEO and managing director of Marico.
For the fiscal year 2021, its total income stood at Rs 3,838.29 crore against Rs 2,988.63 crore a year ago. Net loss for the period widened to Rs 415.74 crore from Rs 268.93 crore in the previous year.
According to the DRHP, it claims to be the largest and fastest-growing fully integrated logistics player in India by revenue as of Fiscal 2021.
Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, truckload freight, warehousing, and supply chain solutions. The company achieved Unicorn status two years back.
With its 120+ gateways, 20+ automated sort centres, 80+ fulfillment centres, and 2,200 direct delivery centres, the company has covered 90 per cent of the country, operating over 15 million sq ft of leased infrastructure at a pan-India level.
It provides supply chain solutions to a diverse base of 21,342 active customers, such as e-commerce marketplaces, D2C e-tailers, and enterprises and SMEs across verticals like FMCG, consumer durables, lifestyle, retail, automotive, and manufacturing.
Delhivery is the largest fully integrated logistics services player in India by revenue. It has built a nationwide network in every state, servicing 17,045 PIN codes, or 88.3 percent of the 19,300 PIN codes in India. The Gurugram-based firm became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund.