Carlyle, an investment firm to offload its 2.53% enturestake in Delhivery

Delhivery went public with its initial public offering (IPO) in May of the previous year. However, the stock has experienced a relatively subdued performance, declining by approximately 28%. In the last quarter of the 2022-23 fiscal year, Delhivery reported a consolidated net loss of Rs 159 crore, compared to a net loss of Rs 120 crore in the corresponding period a year ago.

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Carlyle, the private equity firm, is set to divest its entire 2.53% stake in Delhivery, a logistics company based in Gurugram. This move will be facilitated through their special purpose vehicle, CA Swift Investments. According to sources, Carlyle aims to sell approximately 18.4 million shares of Delhivery at a floor price of Rs 385.50 apiece, slightly below the previous closing price of Rs 388.60. At the lower range, the total value of the offer stands at around Rs 710 crore ($86 million).

Having initially acquired a minority stake in Delhivery in March 2017, the global alternative asset manager decided to reduce its position in the logistics firm. In November, CA Swift Investments sold a 2.5% stake in Delhivery for Rs 607 crore. As of March 31, Carlyle held a 2.53% stake in the company, which represented a decrease from the 5.07% stake owned in the previous September quarter. Notably, Tiger Global, another prominent venture capital fund, also offloaded its stake in Delhivery through open market transactions earlier this year. Tiger Global’s offloading comprised a 0.75% stake in March and an additional 1.6% in April.

Delhivery went public with its initial public offering (IPO) in May of the previous year. However, the stock has experienced a relatively subdued performance, declining by approximately 28%. In the last quarter of the 2022-23 fiscal year, Delhivery reported a consolidated net loss of Rs 159 crore, compared to a net loss of Rs 120 crore in the corresponding period a year ago. Furthermore, the company’s consolidated total income from operations in the March quarter declined by 9%, amounting to Rs 1,934 crore as compared to Rs 2,127 crore in the previous year.

In a regulatory filing, Delhivery stated, “Adjusted EBITDA margin improved to 0.3% in Q4FY23, against -3.7% in Q3FY23, and incremental gross margin in the core express parcel and PTL businesses continued to be above 50%.”