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Delhivery fixes IPO price band at ₹ 462-487 a share

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The logistics and e-commerce supply chain company Delhivery Thursday has fixed a price band of ₹ 462-487 a share for its ₹ 5,235-crore initial public offering (IPO), which will open for subscription on May 11.
According to the company, the three-day initial share will conclude on May 13 and the bidding for anchor investors will open on May 10.

The IPO size has been cut to ₹ 5,235 crores from ₹ 7,460 crores planned earlier, comprising of fresh issuance of equity shares worth ₹ 4,000 crores and an offer for sale (OFS) component of ₹ 1,235 crores by existing shareholders.

Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery’s co-founders will divest their shareholding in the logistics company.

CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of ₹ 454 crores while SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth ₹ 365 crores.

Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P. will sell shares worth ₹ 200 crores and Times Internet will offload shares worth ₹ 165 crores.

In addition to this, Delhivery’s co-founders — Kapil Bharati, Mohit Tandon, and Suraj Saharan– will sell shares worth ₹ 5 crores, ₹ 40 crores, and ₹ 6 crores, respectively.

Proceeds of the fresh issue will be used towards funding organic growth initiatives, inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes.

About 75 percent of the issue has been reserved for qualified institutional investors, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors.

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

Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company, and Citigroup Global Markets India are the book running lead managers to the issue.

In May, Delhivery announced that it has raised $275 million (about ₹ 2,000 crores) in primary funding round, led by Fidelity Management and Research Company. With this capital raise, Delhivery’s valuation was expected to rise to over $3 billion.

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