Delhivery’s three-day initial public offering (IPO) will open for public subscription tomorrow and end on May 13, while bids for anchor investors have opened today. The supply chain company has set a price band of 462-487 for one share 5,235 crore initial share sale.
According to market observers, delhivery Ordering Share Premium (GMP) 7 in gray market today, down compared to yesterday 10. The shares of the company are expected to be listed on the stock exchanges BSE and NSE on Tuesday, 24th May, 2022.
At the upper end of the price band, the company is valued 35,284 crores. size of IPO has been cut 5,235 crore from 7,460 crore was planned earlier. Public issue now includes fresh issue of equity shares 4,000 crore and offer for sale (OFS) component 1,235 crore by existing shareholders.
The latest issue proceeds to the tune of 2,000 crore will be used to finance organic development initiatives and 1,000 crore for inorganic development through acquisitions and other strategic initiatives, in addition, the funds will be used for general corporate purposes.
Brokerage Yes Securities said, “We believe that Delhivery’s asset light business model and its state-of-the-art engineering and automation capabilities along with its innovative technology will enable the company to leverage its operational efficiencies and improve profitability in the years to come. will help.”
Delhivery offers a full range of logistics services including express parcel delivery, heavy cargo delivery, warehousing, supply chain solutions, cross-border express and freight services and supply chain software along with value-added services such as e-commerce return services, payments Is. Collection and processing, installation and assembly services.
“Delhi’s revenue growth has been strong with 49% CAGR from FY19-21. However, losses have increased in a similar manner. The offer price is around 5.5x mcap-to-revenue that post fresh issue and 9MFY22 The valuation appears to be in line with the competitors, but the company is making losses, making this issue costly,” said Abhay Doshi, Founder, Unlisted Arena.