Delhivery IPO to open on May 11; price band set at ₹462-487 per share

Delhivery Ltd has announced plans to open its initial public offering on May 11, 2022 in the price band of ₹462 to ₹487 per equity share of face of ₹1 each. 

Bids can be made for a minimum of 30 equity shares and in multiples of 30 thereafter.

The offer consists of equity shares of face value of ₹1 each of the company aggregating up to ₹5,235 crore comprising a fresh issue aggregating up to ₹4,000 crore and an offer for sale by certain existing shareholders of the company aggregating up to ₹1,235 crore.

The issue will close on May 13, 2022 and the company’s shares will be listed on the BSE and NSE. 

At the upper end of the price band, the company is valued at ₹35,284 crore, Delhivery announced in a virtual press conference.

Proceeds of the fresh issue to the tune of ₹2,000 crore will be used towards funding organic growth initiatives and ₹1,000 crore for inorganic growth through acquisitions and other strategic initiatives, besides, money will be used for general corporate purposes.

The company said 75% of the issue has been reserved for qualified institutional investors, 15% for non-institutional investors, and the remaining 10% for retail investors. In addition, the company has set aside shares worth ₹20 crore for eligible employees, who will get a discount of ₹25 per equity stock during the bidding process.

Investors can bid for a minimum of 30 equity shares and in multiples thereof.

From logistic to value-added services

Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, warehousing, supply chain solutions, cross-border express and freight services, and supply chain software, along with value-added services such as e-commerce return services, payment collection, and processing, installation and assembly services.

The e-commerce logistics company operates a pan-India network and provides services in 17,045 postal index number (PIN) codes.

The company’s express parcel delivery network, which serviced 17,488 PIN codes in the nine months ended December 2021, covered 90.61 per cent of the 19,300 PIN codes in India.

The company provides supply chain solutions to a diverse base of 23,113 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers, and enterprises and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive, and manufacturing.

The Gurugram-based company said about five customers contributed to more than 40% of its revenues in FY21.

Speaking about the company’s key business strategies, Delhivery’s executive director and the chief business officer said the company will focus on expanding investment in infrastructure and network while continuing to build scale in existing business lines, deepen the customer relationships, enhance the technology capabilities, expand into high growth international markets similar to India, and pursue strategic alliances and select acquisitions and investment opportunities.

With inputs from PTI