Delhivery Files for IPO with SEBI
The new age logistics start-up, Delhivery, has filed its draft red herring prospectus (DRHP) with SEBI for its proposed Rs.7,460 crore IPO. The issue is likely to be a combination of a fresh issue and an offer for sale. While Delhivery will raise Rs.5,000 crore via fresh issue of shares, Rs.2,460 crore will represent an OFS to give exit to early investors in the start-up.
Some of the early investors in Delhivery include marquee names like Softbank, Carlyle, Fosun of China and Times Internet. Delhivery would be seeking valuations in the range of $6 billion to $6.50 billion at the time of the IPO. One of the five founders of Delhivery, Sahil Barua, is the son of former IIM-Ahmedabad director Samir Barua.
Among the major OFS participants, Carlyle will sell shares worth Rs.920 crore, Softbank will sell shares worth Rs.750 crore, Fosun worth Rs.400 crore and Times Internet will sell shares worth Rs.300 crore. Some of the other institutional shareholders in Delhivery include GIC of Singapore, Tiger Global and Canadian Pensions. The founders hold 6.97% between them.
Out of the fresh issue component of Rs.5,000 crore, Delhivery will allocate Rs.2,500 crore for organic growth to expand its footprint across India in terms of logistical reach and support functions. Another Rs.1,250 crore will be allocated towards inorganic growth, principally via mergers and acquisitions of niche players in the logistical value chain.
Delhivery has been around for 10 years and provides the complete gamut of logistical services from bookings to delivery, apart from comprehensive supply chain solutions. As of June 2021, Delhivery services over 17,000 PIN codes across the length and breadth of India and the fresh issue will be used to expand this footprint still further.
For FY21, Delhivery reported revenues of Rs.3,547 crore and also reported a net loss of Rs.(416) crore. This reflects a widening of losses from Rs.269 crore in FY20. These are standalone revenues and losses as the overall financial numbers on a consolidated basis would also include the numbers of Spoton Logistics which it recently acquired for $300 million.
Logistics is considered the next big opportunity in India. According to a report by Redseer, the addressable direct spend on logistics is expected to grow from $216 billion in 2020 to $365 billion in FY26, implying a CAGR of nearly 9.2%. Delhivery, being a digital play, will surely take reassurance from the successful IPOs of Zomato and Nykaa.
Start Investing in 5 mins*
Rs. 20 Flat Per Order | 0% Brokerage
Open Free Demat Account
By proceeding, you agree to the T&C.
Introduction A bearer cheque is an efficient and adaptable financial tool. It is a method of payment where the cheque is made out to the owner or bearer of the document. Bearer cheques enable the holder to cash or deposit the cheque without any requirement for identification or endorsement, in contrast to other cheques payable to a specific person or business.
- Jun 06, 2023
Introduction Intraday trading, also known as day trading, is a fast-paced trading strategy where traders aim to take advantage of short-term price fluctuations in financial markets. To succeed in this highly competitive arena, traders rely on various best indicators for intraday to make informed decisions and maximize their chances of profitability.
- Jun 06, 2023
Nifty started the day around 18600, but it witnessed selling pressure as the IT stocks corrected sharply and thus the benchmark index traded under pressure. However, the index recovered the losses from the lows towards the end and closed around the opening levels with a negligible loss.
- Jun 06, 2023
Fill in your details below: