Supply chain company Delhivery has fixed the price band of 462-487 for one share 5,235 crore initial public offering (IPO), which will open for subscription on Wednesday, May 11, 2022 and will end on May 13. The bidding for anchor investors will open on May 10.
Public issue now includes fresh issue of equity shares 4,000 crore and offer for sale (OFS) component 1,235 crore by existing shareholders.
According to market observers, delhivery Share Premium (GMP) Has Slipped Today in Gray Market 10. The Company’s Shares 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 as earlier planned.
“Delhi’s revenue growth has been strong with 49% CAGR from FY19-21. However, losses have increased in a similar fashion. The offer price is around 5.5x mcap-to-revenue that post fresh issue and 9MFY22 Unlisted Arena founder Abhay Doshi said, “Valuations seem in line with peers, but the company is making losses, which makes the issue look expensive. Weak market sentiments and investor concerns about loss-making start-ups may dampen interest.”
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.
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.