Delhivery IPO to on May 11; price band at ₹462-487
NEW DELHI: Supply chain company Delhivery on Thursday said it has set a price band of ₹462487 a share for its ₹5,235-crore initial public offering (IPO), 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 conclude on May 13 and the bidding for anchor investors will open on May 10.
The size of the IPO has been cut to ₹5,235 crore from ₹7,460 crore planned earlier. The public issue now comprises fresh 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 Carlyle Group and SoftBank as well as Delhivery’s co-founders will divest their shareholding in the logistics company.
CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of ₹454 crore while SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth ₹365 crore.
Deli CMF Pte Ltd, a wholly owned subsidiary of private equity fund China Momentum Fund, L.P. will sell shares worth ₹200 crore and Times Internet will offload shares worth ₹165 crore. In addition, Delhivery’s co-founders -- Kapil Bharati, Mohit Tandon and Suraj Saharan -- will sell shares worth ₹5 crore, ₹40 crore and ₹6 crore, respectively.
At present, SoftBank owns 22.78% stake, Carlyle has 7.42% stake, Bharti owns 1.11%, Tondon has 1.88% and Saharan holds 1.79% stake in the company.
Proceeds of fresh issue to the tune of ₹2,000 crore will be used towards funding organic growth initiatives and ₹1,000 crore for inorganic growth through acquisitions and other strategic initiatives, besides, money will be used for general corporate purposes.
The company said that 75% of the issue has been reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors. In addition, the company has set aside shares worth ₹20 crore for eligible employees, who will get a discount of ₹25 per equity stock during the bidding process.
Investors can bid for a minimum of 30 equity shares and in multiples thereof.
Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods 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 company provides supply chain solutions to a diverse base of 23,113 active customers such as e-commerce marketplaces, enterprises and SMEs.