Homegrown logistics services provider, Delhivery has its fingers crossed as its listing goes live today. The Delhivery IPO, which was opened earlier this month, had raised INR 5,235 crore – the second biggest after LIC. Similarities between the two offerings include a cut in final proceeds, a delay on the back of volatile markets, and a rush by funds to place bids in the final hours.
Among holders selling shares in Delhivery’s IPO are SoftBank Vision Fund and Carlyle Group Inc. In the end, Delhivery shares received 63% bids than the amount being sold, with a pick-up in demand coming in the last day and supported mostly by qualified institutional buyers (similar to what happened with LIC IPO opening).
Its first day of trade will give Delhivery an insight into what the future holds for it, considering that globally, new share sales are not getting a ‘satisfactory’ response. If Delhivery’s start at the NSE is similar to that of LIC, it can cast a shadow on the upcoming big offerings in India.
In the current environment where tech valuations have cratered, investors are increasingly unwilling to value companies, particularly IPOs, on growth-adjusted multiples.”~ Arun George, an analyst at Global Equity Research
In light of the current market sentiments towards new shares, e-commerce start-up FirstCry, also backed by SoftBank, will delay an IPO by a few months amid broader market headwinds.