The initial share public offering (IPO) of supply chain company Delhivery was subscribed 21% on the first day of subscription on Wednesday. Bids were received for 1,32,64,410 shares, while 6,25,41,023 shares were offered for the share sale. Price Range for Delhivery IPO is 462-487 each.
The share of Retail Individual Investors (RIIs) got 30% subscription, while Qualified Institutional Buyers (QIBs) got 29% subscription and non-institutional investors 1% subscription.
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. delhivery increased on tuesday 2,347 crore from anchor investors.
According to market observers, delhivery Shares Premium (GMP) has come down 2 in the gray market today, from 7 tomorrow. The company’s shares are expected to be listed on the stock exchanges BSE and NSE on Tuesday, May 24, 2022.
“We recommend subscribing from a long term perspective, as it is the largest and fastest growing 3PL express parcel delivery player, with integrated infrastructure network, large amount of data intelligence and R&D, experienced professional management team and have strong relationships with a diverse customer base.” Yes security.
The proceeds from the new issue will be used to finance organic growth initiatives, inorganic growth financing through acquisitions and other strategic initiatives, and for general corporate purposes. Delhivery Express provides a full range of logistics services including parcel delivery, heavy cargo delivery and warehousing.
“Delhivari has shown strong growth and created a recognizable brand in a segment characterized by intense competition and low barriers to entry. With a pan-India presence and diversification into other regions (LTL, omnichannel etc.), the management is looking to further optimize its network, crossutilize its network and use scale to reduce costs. However, we look forward to continue on the path of achieving positive cash flow,” ICICI Securities said.