Rs 5235 Crore Delhivery IPO Launched: Should You Buy Shares At 462-487 Range?

Rs 5235 Crore Delhivery IPO Launched: Should You Buy Shares At 462-487 Range?
Rs 5235 Crore Delhivery IPO Launched: Should You Buy Shares At 462-487 Range?

On the first day of bidding, the initial public offering of logistics services provider, Delhivery was subscribed 4% against IPO size of 6.25 crore shares.

Delhivery IPO Details

The offer size of the Delhivery IPO has been reduced to 6.25 from 10.75 crore shares as the company has raised Rs 2,346.7 crore from 64 anchor investors.

These anchor investors include Baillie Gifford Pacific Fund, Schorder International, AIA Singapore, Amansa Holdings, Aberdeen, Goldman Sachs, and Singapore.

Coming to Retail investors, they have bid for 21 percent of the shares reserved for them.

Similarly, the firm’s employees booked 3 percent of their portion.

The logistics service provider has reserved shares worth Rs 20 crore for employees.

They will be getting these shares at a Rs 25 discount to the final offer price. 

The offer will be closing on May 13 has the price band fixed at Rs 462-487 per share.

When it comes to Non-institutional investors, they have bid for 65,040 shares against 1.69 crore shares set aside for them.

Interestingly, the qualified institutional buyers have not started bidding yet.

Out of the total total size of the issue, 75 percent is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail investors.

With this IPO, Delhivery is planning to mobilize Rs 5,235 crore that comprises a fresh issue of Rs 4,000 crore and an offer for sale of Rs 1,235 crore by shareholders.

The logistic firm plans to utilize the net fresh issue proceeds for funding organic growth initiatives, and inorganic growth through acquisitions and other strategic initiatives, besides general corporate purposes.

Subscribe Or Not?

Considering the long term perspective, YES Securities has given a subscribe rating to Delhivery IPO.

According to the brokerage firm, Delhivery’s asset light business model, engineering and automation along with new age technologies will help the company.

Besides this, Dehlivery has a solid market position in the parcel delivery market.

The firm has a strong record in identifying and solving the operating problems in a highly fragmented and unorganized market.

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