The Delhivery IPO, which is the second biggest for Dalal Street in the calendar year 2022 (CY22) after LIC, expects to raise Rs 5,235 crore from the maiden offer, with a price band fixed at Rs 462-487 per share.
Delhivery IPO: The share allotment for Delhivery IPO is likely to be done on May 19, Thursday and the listing date is 24th May. The issue was open for subscription from 11-13 May 2022.
Delhivery is a fully integrated logistics player in India providing a full range of logistics services, including express parcel and heavy goods delivery, part truckload freight, truckload freight, warehousing, supply chain solutions, cross-border express, and freight services. Apart from this it also offers supply chain software and value-added services, such as e-commerce return services, payment collection and processing, installation and assembly services, and fraud detection.
IPO of the delivery service received a decent response from bidders who put up bids for 10,17,04,080 shares against 6,25,41,023 shares upon sale. The issue was booked 1.63 times on Day 3, mainly due to the bumper response of the QIBs. Institutional buyers bid for 2.66 times the shares allotted for them. However, all the other categories were undersubscribed. Non-institutional subscribers booked just 30 percent of the portion reserved for them. Retail individual investors subscribed to 57 percent of the shares allotted to them.
The Delhivery IPO, which is the second biggest for Dalal Street in the calendar year 2022 (CY22) after LIC, expects to raise Rs 5,235 crore from the maiden offer, with a price band fixed at Rs 462-487 per share.
Proceeds of the fresh issue to the tune of ₹2,000 crores will be used towards funding organic growth initiatives and ₹1,000 crores for inorganic growth through acquisitions and other strategic initiatives, besides, money will be used for general corporate purposes.
Ahead of the IPO, Delhivery on Monday, 9 May 2022, finalized the allocation of 4,81,87,860 equity shares to anchor investors at an allocation price of Rs 487 per share, aggregating to Rs 2,346.74 crore.
How to check the allotment status-:
Investors can check Delhivery IPO share allocation status via the BSE website. There will also be an option to check Delhivery IPO share allotment status via the registrar’s website — Link Intime India Private Ltd.
While Investors who do not win their bids will be refunded on May 20, credit of shares to Demat accounts will be done on May 23 and the listing date is 24th May.
1. How to Check Delhivery IPO Share Allotment Status via BSE Website:
Go to the official website of BSE or Bombay Stock Exchange. The link is (https://www.bseindia.com/investors/appli_check.aspx)
How to Check Delhivery IPO Allotment Status via the Registrar’s Website (Link Intime India Private Ltd.)
2. Go to the Link Intime India website using the URL: (https://www.linkintime.co.in/IPO/public-issues.html)
Delhivery IPO latest GMP-:
In the grey market, unlisted shares of Delhivery were commanding a price of Rs 5, which indicated a tepid listing on the bourses. This means, the Delhivery IPO GMP today is Rs 492 apiece.
Delhivery IPO Financials-:
Delhivery has never reported a profit, according to its share-sale prospectus. The company made a loss of Rs 891.14 crore for the nine months ended December 2021 and posted a Rs 415.7 crore loss in FY21. Revenue was Rs 4,911 crore in the nine months ended December and Rs 3,838 crore in FY21. It reported a negative free cash flow of Rs 246 crore in FY21 versus Rs 848 crore in FY20. Freight, handling, and servicing costs rose to Rs 3,480 crore in the first nine months of FY22 from Rs 2,026 crore in FY21.
Market experts on the IPO-:
1. Yes Securities believes the company’s asset-light business model, cutting‐edge engineering, and automation capabilities will help it leverage operating efficiencies and improve profitability in the coming years. The brokerage has listed a unified infrastructure network, proprietary technology stack and capabilities, vast amount of data intelligence and R&D, and strong relationship with a diversified customer base as key positives of the company.
2. While Brokerage house Angel Brokerage said that for 9MFY22, the company has reported an EBITDA loss of Rs 232 crores and a net loss of Rs 891 crores. In terms of revenue, Delhivery posted robust growth of 82 percent during this period and it is expected to turn EBITDA positive by the FY22-end. A slowdown in e-commerce services in India will impact the company due to its huge dependence on express parcel services, and concentration of select customers. Its top-five customers contribute 41 percent of the total revenue.
