The initial public offer (IPO) of logistics services provider Delhivery will open on Wednesday (May 11). The firm aims to raise Rs 5,235 crore from the share sale, which will close on May 13. The size of the IPO has been cut to Rs 5,235 crore from Rs 7,460 crore planned earlier.
Shares are available in a price band of Rs 462 to Rs 487 per equity share. The allotment of shares will be done on May 19. The lot size of the IPO is 30 shares for which one will have to spend Rs 14,610.
A retail individual investor can apply for up to 13 lots or 390 shares by spending Rs 1,89,930. The stock is likely to be listed on BSE and NSE on May 24. Employees will get a discount of Rs 25 per share.
Link Intime India Private Ltd is the registrar for the IPO.
Proceeds of the public issue will be utilised towards funding organic growth, funding inorganic growth through acquisition and strategic initiatives, and general corporate purposes.
Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt Ltd, BofA Securities India Limited, and Citigroup Global Markets India Private Limited are the book running lead managers for the issue.
The IPO consists of a fresh issue of Rs 4,000 crore, and an offer for sale of Rs 1,235 crore. The company allocated 10 per cent of the issue for retail individual investors (RII). Around 75 per cent of the total offer has been reserved for qualified institutional buyers (QIB). The company has set aside For 15 per cent for non-institutional investors (NII).
Yash Gupta- Equity Research Analyst, Angel One Ltd said, "Based on annualized FY22 numbers, the IPO is priced at EV/Sales of 5.1 times and Price to Book value of 5.2 times at the upper price band of the IPO. For 9MFY22 the company has reported an EBITDA loss of Rs 232 crore and a Net loss of Rs 891 crore. In the Indian market, no other peer group has the same business model as Delhivery. The company has reported good revenue growth of 82 per cent in 9MFY2022 and it is expected that the company may turn EBITDA positive by the FY2022 end. Given the expensive valuation, we are assigning a NEUTRAL recommendation to the Delhivery IPO."
YES Securities has given a SUBSCRIBE call to the IPO for a long-term perspective. The brokerage said the firm is the largest and fastest-growing 3PL express parcel delivery player and has a unified infrastructure network. The company has a proprietary technology stack and capabilities and houses a vast amount of data intelligence and R&D. It has an experienced professional management team and a strong relationship with a diversified customer base.
Delhivery is engaged in providing a full range of logistics services, including delivery of express parcel and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. Delhivery is the largest and fastest-growing fully integrated logistics services player in India by revenue as of FY21.
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