Delhivery IPO: Opens on May 11; Find the key details before subscribing
Representational Image
Delhivery Limited is scheduled to launch its initial public offering (IPO) on Wednesday, May 11, 2022. The company has fixed the price band of Rs 462-487 per share for the issue. It is providing a Rs 25 per equity share to eligible employees. The issue will close on Friday, May 13, 2022.
Retail investors can bid for a minimum of 23 shares and in multiples thereafter.
The logistic and supply chain company has plans to raise up to Rs 5,235 crore through the initial stake sale. Out of the total, the fresh issue stands at Rs 4,000 crore and the offer for sale (OFS) component is Rs 1,235 crore. The company has cut its total issue size to Rs 5,235 crore from Rs 7,460 crore planned earlier.
Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery's co-founders will divest their shareholding in the logistics company.
The company said that 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. In addition, the company has set aside shares worth Rs 20 crore for eligible employees, who will get a discount of Rs 25 per equity stock during the bidding process.
The proceeds from the issue will fund the company's organic and inorganic growth initiatives via acquisitions and other strategies.
Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities India, and Citigroup Global Markets are the book running lead managers of the issue while Link Intime India Private Limited is the registrar for the purpose.
The basis for allotment of the shares is likely to happen on May 19, 2022, and the shares will be credited to the DEMAT account on May 23, 2022. The firm will list on exchanges on May 24, 2022.
According to the RedSeer Report, Delhivery was the largest and fastest-growing fully-integrated logistics services player in India by revenue as of Fiscal 2021. It has built a nationwide network in every state, servicing 17,045 PIN codes or 88.3 per cent of the 19,300 PIN codes in India. The Gurugram-based firm became a unicorn in 2019 when it raised $413 million in a Series F round led by SoftBank Vision Fund.