Delhivery block deal: Ca Swift Investments sells entire stake for ₹709.5 cr; Norges Bank, Societe Generale top buyers

Block deal: Logistics solution provider, Delhivery witnessed a huge block deal on Thursday. CA Swift Investments exited the company by selling its entire stake for nearly ₹709.5 crore. On the other hand, there were in total of 34 buyers with majority of them being foreign investors. Norway-based Norges Bank on account of the Government Petroleum Fund invested the most in Delhivery in the latest block deal, while Societe Generale, Saudi Central Bank, and BNP Paribas were also among the top buyers.

The block deal was carried on BSE and in tranches.

As per the exchange's data, CA Swift Investments offloaded its entire shareholding of 1,84,04,607 equity shares or 2.53% at a price of ₹385.5 apiece. The transaction aggregated to ₹709.5 crore.

Meanwhile, Norges Bank On Account of Government Petroleum Fund invested ₹156.77 crore in Delhivery by buying 4,066,805 equity shares. While French-based financial services provider, Societe Generale bought 2,320,607 equity shares for nearly ₹84.5 crore.

Also, Saudi Central Bank purchased 2,207,195 equity shares for ₹85.09 crore. Further, BNP Paribas Arbitrage invested ₹60.52 crore by purchasing 1,570,000 equity shares in the company.

Other major investors were --- Goldman Sachs (Singapore) Pte buying 5.40 lakh shares, and Morgan Stanley Mauritius Company purchasing 5.20 lakh shares in the company.

Furthermore, TT Emerging Markets Opportunities Fund II Limited and TT Emerging Markets Equity Fund purchased over 6.98 lakh shares and 6.35 lakh shares respectively.

Also, the investors were --- Washinton State Investment Board, VFM Emerging Markets Trust, Tesltra Super PTY Ltd, Tasman Market Neutral Fund, Amazon Market Neutral Fund, Barclays Multi-Manager Fund Public, AIA Singapore Private Limited, and CitiGroup Global Markets Mauritius among others.

On BSE, Delhivery's share price finished at ₹386.65 apiece, down 0.45%.

Recently, Macquire in its note saud, "Management remains of the strong view that Delhivery's cost structure would trump those of captive logistics platforms in any free market setting. Further, we think there is also scope for consolidation in the 3PL segment."

In terms of valuation, Macquire's base-bull case DCF fair value on Delhivery is Rs460-730 based on 10-year revenue CAGRs of 18%-23%. Among catalysts, are acceleration in e-commerce volumes, and margin improvement.

Earlier this month, Kotak Institutional Equities in its research note on Delhivery said, "An understanding of the mid-mile network advantage makes one realize that advances to compete with Delhivery by the ecosystem (self-logistics peers, Meesho) are experiments at best. We retain BUY, noting the upside coming from whenever there is a broad-based realization by such players to utilize rather than replicate Delhivery's network strengths."

Kotak had set a fair value of ₹410 apiece on Delhivery.