Delhivery shares fall over 3.50% on large block deal

Shares of Delhivery, the country's largest fully integrated logistics services provider, tumbled 3.70% in early trade on Friday, reaching ₹398.50 apiece. This downturn came after 1,74,57,113 shares of the company changed hands in a block deal window on Friday. The total worth of the transaction was around ₹722.18 crore. The buyers and sellers, however, were not known immediately.

Earlier, it was reported that Japan’s SoftBank Group Corp. would sell shares worth $154 million (4% stake) in Delhivery in a block deal on Friday, Moneycontrol reported on Thursday, citing sources. Following the sale, the investment firm is expected to retain a 10–11% stake in the new-age logistics firm.

Also Read: SoftBank likely to sell stake worth $150 million in Delhivery: Report

SoftBank, through its subsidiary SvF Doorbell (Cayman), owned a 14.5% stake in the logistics firm as of September 30. Earlier, the group had offloaded 3.8% of its stake in March. The Japanese investment firm had offloaded a stake worth ₹954 crore in March this year.

Also Read: Delhivery bets on improving H2 demand to deliver earnings

The bulk deal transaction, which took place in March, was joined by investors like the Saudi Arabian Monetary Authority, City of New York Group Trust, Societe Generale, BNP Paribas Arbitrage, Morgan Stanley Mauritius, Baillie Gifford Emerging Markets Equities Fund, etc.

Before SoftBank, Tiger Global had sold 1.2 crore shares in Delhivery at ₹335 apiece. SoftBank has been selling stakes in publicly held companies from its portfolio, such as Zomato, Paytm, and Delhivery. Last month, it mopped up ₹1,020 crore from a 1.1% stake sale in Zomato.

In terms of financials, Delhivery net losses narrowed to ₹103 in Q2FY24 crore as compared to a net loss of ₹254 crore in the corresponding period last year.

Also Read: Delhivery Q2 Results: Net loss narrows 59% to ₹103 crore, revenue up 8% YoY

The revenue from operations in the second quarter of the current fiscal year stood at ₹1,914 crore, registering a growth of 8% compared to ₹1,796 crore in the year-ago period.

Following the company's Q2 performance, domestic brokerage firm ICICI Securities maintained its 'buy' rating on the stock with a target price of ₹500 apiece.

At 11:45 PM, the stock was trading with a drop of 2.80% at ₹402.25 apiece. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.