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Delhivery files papers for 7,460 cr share sale

Delhivery total income stood at  ₹3,838.29 crore in FY21 compared with  ₹2,988.63 crore a year ago. Net loss widened to  ₹415.74 crore from  ₹268.93 crore in FY20.Premium
Delhivery total income stood at 3,838.29 crore in FY21 compared with 2,988.63 crore a year ago. Net loss widened to 415.74 crore from 268.93 crore in FY20.

Delhivery is the largest and fastest growing fully-integrated logistics services player in India by revenue. It has a nationwide network with presence in each state, servicing 17,045 PIN codes, or 88.3% of the 19,300 PIN codes in India as of June

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Delhivery Ltd, an Indian logistics and supply chain startup, has filed the paperwork to raise as much as 7,460 crore via an initial public offering (IPO).

The IPO comprises a fresh issue of 5,000 crore worth of shares and an offer for sale (OFS) of up to 2,460 crore by its promoters and shareholders.

Investors Carlyle and SoftBank are making a partial exit via the OFS. Private equity firm Carlyle Group, which first invested in the logistics startup in November 2017, is selling shares worth 920 crore in the OFS.

Fosun Group-owned China Momentum Fund is selling 400 crore worth of shares via its affiliate Deli CMF Pte Ltd. Fosun invested in Delhivery in May. The OFS will also see SoftBank Group selling shares amounting to 750 crore while Times Internet Ltd is selling shares worth as much as 330 crore.

Delhivery co-founders will also participate in the OFS—Kapil Bharati is selling shares worth as much as 14 crore, Mohit Tandon is selling up to 40 crore, and Suraj Saharan is selling up to 6 crore.

Currently, SoftBank holds a 22.78% stake, Carlyle has a 7.42% stake, while Fosun has a 1.11% stake in the company. Bennett, Coleman and Co. Ltd (Times Group) owns a 1.24% stake.

Among the three co-founders, Bharati has 1.11%, Tandon owns 1.88%, and Saharan holds a 1.79% stake in the firm. Sahil Barua, who is the MD and CEO of the company, has a 2.19% stake.

The proceeds from the issue will fund organic growth initiatives and 1,250 crore for inorganic growth via acquisitions and other strategies.

Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India, Citigroup Global Markets are managing the share sale.

The firm is the largest fully integrated logistics services player in India by revenue. It has built a nationwide network in every state, servicing 17,045 PIN codes, or 88.3% of the 19,300 PIN codes in India as of 30 June.

The startup’s 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 30 June, including 38 gateways and 145 service centres of Spoton Logistics Ltd that it acquired for 1,750 crore in August.

In fiscal 2021, the company fulfilled over 289.2 million express parcel orders, carried 373,854 tonnes of freight and processed 47.37 million orders through its fulfilment centres.

For the fiscal year 2021, its total income stood at 3,838.29 crore against 2,988.63 crore a year ago. Net loss for the period widened at 415.74 crore from 268.93 crore in the previous year.

The Gurugram-based firm became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund. Delhivery is likely to sell a 10-15% stake for $500-600 million through the planned IPO, Mint reported on 9 June. This would value the startup at around $4 billion. It aims to list before the end of FY22.

Last month, the company named three industry veterans: Kalpana Morparia, former chairman of JP Morgan, South and Southeast Asia; Romesh Sobti, former CEO and managing director of Indusind Bank; and Saugata Gupta, CEO and managing director of Marico, as independent directors.

Backed by Japan’s SoftBank, US-based Carlyle Group and Singapore sovereign wealth fund GIC, Delhivery raised $75 million in September this year and additional funding of $125 million from Addition, a fund floated by former Tiger Global executive Lee Fixel.

In May, Delhivery got nearly $277 million from a group led by US investment firm Fidelity and participation from GIC, Abu Dhabi-based Chimera Investment LLC and UK’s Baillie Gifford in the round.

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