Delhivery shares up 10% on debut
Delhivery Ltd surged 10% on its trading debut as investors piled into the shares of the SoftBank-backed logistics provider, shrugging off risks related to the Ukraine war, economic growth and interest rates.
Delhivery Ltd surged 10% on its trading debut as investors piled into the shares of the SoftBank-backed logistics provider, shrugging off risks related to the Ukraine war, economic growth and interest rates.
Shares of Delhivery ended trading on Tuesday at ₹537.25 on BSE, valuing the company at ₹38,923 crore ($5 billion).
The buoyant stock market debut comes as a relief to startups preparing to go public, including PharmEasy, Ola, OYO, and Snapdeal.
Delhivery’s initial public offering, the second-biggest such share sale in India this year, comes a week after shares of Life Insurance Corp. of India (LI) fell 8% on the first day of trading.
Delhivery, similar to LIC, trimmed its public offer by 30% to ₹5,235 crore as markets became choppy since Russia invaded Ukraine in February. The IPO was launched on 11 May and was subscribed 1.63 times at ₹487 apiece.
On Tuesday, the shares of Delhivery started trading at ₹493, 1.2% higher than the issue price.
In intraday trading, the shares rose as much as 16.8% to ₹568.90. Prior to its trading debut, its shares were available at a ₹5 discount to the issue price
As part of the IPO, investors including SoftBank, Carlyle, Fosun and Times Internet sold shares worth ₹1,235 crore.
SoftBank, which invested around $400 million in Delhivery in 2019, now holds an 18.51% stake valued at over ₹7,200 crore (around $1 billion).
Meanwhile, Carlyle’s stake was reduced to 5.08% and is valued at ₹1,977.5 crore, and Times Internet owns 3.91%, worth ₹1,521 crore.
Fosun almost fully exited, garnering almost over ₹200 crore and holds less than 1% of Delhivery.
Ahead of its IPO, Delhivery had raised ₹2,347 crore from 64 anchor investors, including Tiger Global Management, Steadview Capital, Bay Capital and Singaporean wealth funds Government of Singapore (GIC) and Monetary Authority of Singapore.
Delhivery was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati as a hyperlocal express logistics services firm. It became a unicorn, or a startup valued at $1 billion or more, in 2019.
The company provides a full suite of logistics services and supply-chain solutions to 21,342 customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and small businesses across several verticals such as fast-moving consumer goods and consumer durables.
Delhivery counts SoftBank Vision Fund, Nexus Venture Partners, Carlyle Asia Partners and Canada Pension Plan Investment Board (CPPIB) among its key shareholders.
It had filed for the IPO in November. The funds will be utilized for growth initiatives, including acquisitions and other strategic initiatives, Delhivery’s senior management had said.
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First Published:25 May 2022, 12:42 AM IST
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