Delhivery Ltd. IPO

Delhivery Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹487

Issue Price

Listing Price

₹493

Listing Price

Listing Gains

+₹6.00 (+1.23%)

Listing Gains

IPO Details

Bidding Dates

11 May - 13 May '22

Bidding Dates

Min. Investment

₹13,860

Min. Investment

Lot Size

30.00

Lot Size

Price Range

₹462 - ₹487

Price Range

Issue Size

2,889 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate - Delhivery Ltd. IPO

  • Retail Individual Investor
    0.57x
  • Non-Institutional Investor
    0.30x
  • Qualified Institutional Buyers
    2.66x
  • Employees
    0.27x


About Delhivery Ltd. IPO

Gurugram-based Delhivery is a supply chain company and provides a full range of logistics solutions to a diverse base of customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing. As per reports, Delhivery is the largest and fastest-growing fully integrated Logistics services player in India by revenue as of FY21. The company’s supply chain management system caters to a diverse 21,000 active customers. Its nationwide network has completed over 1 billion orders, servicing 17,045 PIN codes in the six months ended June 30, 2021. Its technology stack consists of over 80 applications for all supply chain processes. Delhivery IPO will open for subscription on May 11 and close on May 13. The company has set the price band for the public issue at Rs 462-487 per share. At the upper end of the price band, the company expects a valuation of Rs 35,283 crore. The Rs 5,235 crore-worth IPO consists of a fresh issue of shares worth Rs 4,000 crore and an offer for sale (OFS) of shares worth Rs 1,235 crore. China Momentum Fund will sell up to Rs 200 crore via its affiliate Deli CMF Pte Ltd. In the OFS, CA Swift Investments will offload shares worth Rs 454 crore, SVF Doorbell Ltd will sell up to Rs 365 crore, and Times Internet up to Rs 165 crore worth of shares. Delhivery co-founders will also participate in the OFS. Mohit Tandon will sell shares worth Rs 40 crore, Suraj Saharan will sell up to Rs 6 crore worth of shares and Kapil Bharati will sell shares worth Rs 5 crore. The company will finalise the basis for allotment on May 19, and the shares will be credited to the demat accounts on May 23. Delhivery plans to list on bourses on May 24.

Financial Snapshot - Delhivery IPO

In the table provided below, you can get a snapshot of Delhivery’s financials in recent years. It is always recommended to read the detailed financial statements and the draft red herring prospectus before investing in any new company via their IPO. This data regarding their financial performance and stability will help investors make a more informed decision.

Financial Year (amount in Rs. Cr.) Total Assets Total Revenues Profit After Tax
March 2019 Rs 4,597.80 crore Rs 3,838.29 crore Rs -415.74 crore
March 2020 Rs 4,357.31 crore Rs 2,988.63 crore Rs -268.93 crore
March 2021 Rs 4,062.55 crore Rs 1,694.87 crore Rs -1,783.30 crore


Important Dates - Delhivery IPO

Application opens on 11th May 2022
Last date of application 13th May 2022
Date of Allotment 19th May 2022
Refund begins from 20th May 2022
Credit of shares to Demat 23rd May 2022
Listing date 24th May 2022


Delhivery IPO Grey Market Premium ( Data as per IPO Watch)

Date GMP
4th May Rs.35
3rd May Rs.30


Why should you invest in Delhivery Ltd. IPO?

Delhivery has made a major mark in the logistics and supply chain management sector. In 10 years since its inception, it has rapidly become a nationwide operator and has brought in several rounds of funding, raising its valuation significantly. While the net profit is still negative, the revenue has risen tremendously in the post-pandemic era. This upwards growth has helped reduce the profit deficit significantly. The company intends to raise around Rs 5,000 crore to fund its organic and inorganic growth through acquisitions and other initiatives.

 

Delhivery IPO Noteworthy Highlights

  • Check out some of the key details and information about Delhivery IPO before investing:
  • Delhivery became a startup unicorn in 2019 after it raised $413 million in a Series F round led by SoftBank Vision Fund.
  • In the six months ended June 30, 2021, Delhivery had a nationwide network, servicing 17,045 PIN codes, or 88.3% of the 19,300 PIN codes in India.
  • The company’s 164-network infrastructure includes 124 gateways, 20 automated sort centres, 83 fulfilment centres, 35 collection points, 24 returns processing centres, 249 service centres, 120 intermediate processing centres, and 2,235 direct delivery centres as of June 30, 2021
  • Delhivery has partnered with many companies including Reliance-owned fashion marketplace Ajio to improve customer experience.

 


SWOT Analysis - Delhivery Ltd. IPO

Strengths

Delhivery has a large scale of operations and a growing brand name. A big influx of investors and recent funding has provided financial stability. The company has shown strong revenues in the last 2 years. They have a large number of active clients across the nation. 

Weaknesses

They are operating at a negative net profit since the last 3 years. Their valuation might be far more than the actual financial performance, which is unappealing for value investors and can be taken as a perceived weakness. 

Opportunities

Capital raised through IPO is likely to be used for inorganic growth measures like acquisitions, which can expand their offering. Diversification of existing portfolio is likely to offset its present net loss and get Delhivery back to positive earnings.

Threats

A large number of logistics and SCM companies exist in the market that serve as competitors. Any dip in ecommerce sector performance or changes in policies that influence the logistics segment like fuel costs, transportation policies etc. will have a direct impact on Delhivery’s operations as well.


Competitive Analysis - Delhivery Ltd. IPO

There are a host of companies which provide specialised logistics, warehousing and supply chain management services like Blue Dart, DTDC, Delex, Flexport, Ecom Express, etc. All of these companies are looking to bolster their operations which can cause a significant dent to Delhivery’s market share. 

Some of Delhivery’s listed peers include Mahindra Logistics, Blue Dart Express and TCI Express. Take a look at these direct competitors:



How to apply for Delhivery Ltd. IPO?

You can apply for the Delhivery Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an Delhivery Ltd. click here.
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Frequently Asked Questions (FAQs) - Delhivery Ltd. IPO

When will the Delhivery IPO be launched?

Delhivery IPO will open for subscription on May 11 and close on May 13.

What is Delhivery IPO Price Band?

The company has fixed the price band for the issue at Rs 462-487 per share.

Who will be Delhivery IPO Lead Managers?

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited are the BRLM or the book running lead managers for the Delhivery IPO.

What is Delhivery IPO Minimum and Maximum Lot Size?

Delhivery IPO lot size is 30 shares. Retail individual investors can apply for up to a maximum of 13 lots. 

Who are the major shareholders of Delhivery?

SoftBank Holding holds the largest shareholding in Delhivery with a 22.78% stake. Nexus Ventures and CI Swift Holdings (Carlyle) hold a 9.23% and 7.42% stake, respectively. Kapil Bharati holds 1.11%, Mohit Tandon owns 1.8%, and Suraj Saharan has a 1.79% stake in the company.

What will be the OFS portion in the IPO?

In its Rs 5,235-crore worth IPO, Delhivery is expected to raise Rs 4,000 crore via the fresh issue of shares and Rs 1,235 crore through an offer for sale (OFS).

Who will participate in the OFS?

China Momentum Fund, via its affiliate Deli CMF Pte Ltd, will sell up to Rs 200 crore in the OFS. The OFS will also comprise up to Rs 454 crore by CA Swift Investments, up to Rs 365 crore by SVF Doorbell Ltd, and up to Rs 165 crore by Times Internet. Mohit Tandon will sell shares worth Rs 40 crore, Suraj Saharan will sell up to Rs 6 crore worth of shares and Kapil Bharati will sell shares worth Rs 5 crore, reports said.

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