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Delhivery gets SEBI’s approval to raise INR 7,460 crore through IPO

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Capital market regulator SEBI give a go-ahead to Delhivery to raise INR 7,460 crore through an initial public offering (IPO).

As per the draft red herring prospectus (DRHP), the IPO comprises fresh issuance of equity shares worth INR 5,000 crore and an offer for sale (OFS) component of INR 2,460 crore 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.

The logistics company which filed its preliminary IPO papers with Sebi in November, obtained its observations letter on January 13, an update with the regulator showed on Tuesday.

This issuance of the observations letter implies a nod by Sebi for the IPO.

According to the draft papers, CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of INR 920 crore, SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth 750 crores, Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P. will sell shares worth INR 400 crore and Times Internet will sell shares worth INR 330 crore.

In addition to this, Delhivery’s co-founders – Kapil Bharati, Mohit Tandon, and Suraj Saharan will sell their shares worth INR 14 crore, INR 40 crore, and INR 6 crore, respectively.

At present, SoftBank, Carlyle, and China Momentum Fund own 22.78 percent, 7.42 percent stake, and 1.11 percent stake respectively.

While, Bharati, Tondon, and Saharan own 1.11 percent, 1.88 percent, and 1.79% stake in the company.

The company plans to use the proceeds of the fresh issue towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes.

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

In May, Delhivery had announced that it has raised USD 275 million (about INR 1,995 crore) in the primary funding round, led by Fidelity Management and Research Company. With this capital, Delhivery’s valuation was expected to rise to over USD 3 billion.

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