The three-day initial share sale will end on May 13 and bidding for anchor investors will open on May 10.
The three-day initial share sale will end on May 13 and bidding for anchor investors will open on May 10.
Supply chain company Delhivery on Thursday said it has set a price band of Rs 462-487 per share for its initial public offering (IPO) of Rs 5,235 crore, which will open for subscription on May 11.
At the upper end of the price band, the company is valued at ₹35,284 crore, Delhivery announced in a virtual press conference.
The three-day initial share sale will end on May 13 and bidding for anchor investors will open on May 10.
The size of the IPO has been reduced to Rs 5,235 crore from the earlier planned Rs 7,460 crore. The public issue now includes issuance of equity shares worth ₹4,000 crore and an offer for sale (OFS) component of ₹1,235 crore by existing shareholders.
Under the OFS, investors will sell their stake in the logistics company co-founded by Delhivery, along with Carlyle Group and SoftBank.
CA Swift Investments, a unit of Carlyle Group, will sell shares worth ₹454 crore, while SVF Doorbell (Cayman) Limited, an arm of SoftBank Group, will sell shares for ₹365 crore.
Daily CMF Pte Ltd, a wholly owned subsidiary of private equity fund China Momentum Fund, LP will sell shares worth ₹200 crore and Times Internet will sell shares worth ₹165 crore.
In addition, Delhivery’s co-founders – Kapil Bharti, Mohit Tandon and Sooraj Saharan – will sell shares worth ₹5 crore, ₹40 crore and ₹6 crore respectively.
At present, SoftBank holds 22.78 per cent, Carlyle holds 7.42 per cent, Bharti 1.11 per cent, Tandon holds 1.88 per cent and Saharan holds 1.79 per cent in the company.
Rs 2,000 crore from the fresh issue will be used to finance organic growth initiatives and Rs 1,000 crore will be used for inorganic growth through acquisitions and other strategic initiatives, in addition, the funds will be used for general corporate purposes. will be done for
The company said that 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. In addition, the company has set aside ₹20 crore shares for eligible employees, who will get a discount of ₹25 per equity stock during the bidding process.
Investors can bid in a minimum of 30 equity shares and multiples thereof.
From Logistics to Value Added Services
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 . , payment collection, and processing, installation and assembly services.
The e-commerce logistics company operates a pan-India network and provides services in postal index number (PIN) code of 17,045.
The company’s express parcel delivery network, which served 17,488 pin codes in the nine months ended December 2021, covered 90.61 percent of the 19,300 pin codes in India.
The company provides supply chain solutions to a diverse base of enterprises and SMEs across 23,113 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers, and multiple verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail. , automotive, and manufacturing.
The Gurugram-based company said around five customers contributed more than 40 per cent of its revenue in FY11.
Speaking about the company’s key business strategies, Delhivery’s Executive Director and Chief Business Officer said that the company will focus on expanding investments in infrastructure and networks, while continuing to build scale in existing business lines, enhancing customer relationships. will deepen, enhance, expand technology capabilities. High-growth international markets similar to India, and select strategic alliances and acquisitions and investment opportunities.
Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India are the book running lead managers of the issue.
The equity shares of the supply chain company will be listed on the stock exchanges-BSE and NSE on May 24.
In August, Delhivery acquired Spoton to further expand its partial truckload (PTL) freight services business.