The year 2021 proved to be a beneficial year for primary markets, wherein more than 63 IPOs went public, raising more than 1 Lakh Crore. It is estimated that approximately 1 million investors participated in this IPO rally. The largest IPO was from One97 Communications (PAYTM) for Rs 18,300 crore — the largest offering historically in India. New-age technology brands like Paytm, Zomato, Nykaa and Policybazaar, released initial public offerings (IPOs) in India during 2021 even as the stock market key indices leaped to new highs shrugging off COVID concerns. Coming out now, is the offering from Delhivery IPO. Let’s take a quick look at this offering..
About Delhivery -
Incorporated in 2011, the Gurugram-based Delhivery provides an end-to-end logistics solution, including express parcel delivery, heavy goods delivery, PTL /TL freight, warehousing, supply chain solutions, along with value added services. Delhivery has shipped more than 1.2 billion express parcels since inception garnering 22% market share in Ecommerce parcel space. The company have an enviable customer base standing at 23,113 active customers including e-commerce marketplaces, enterprises and SMEs
Delhivery Ltd IPO details -
Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Delhivery Ltd IPO date and its share price.
Delhivery Ltd IPO date -
According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from 11th, May and will be available for subscription until 13, May 2022.
Delhivery Ltd IPO issue size -
The total issue size of the latest Delhivery IPO is expected to be around ₹5,235 crores. The fresh issue of shares offered by Delhivery Ltd IPO consists of ₹4,000 crores and the offer for sale is upto ₹1,235 Crores.
75% of the offer is for QIBs (qualified institutional buyers), 10% for retail investors, and the balance 15% for NIBs (non-institutional investors).
Delhivery Ltd IPO share price
The price band of the company’s upcoming IPO 2023 is declared to range between ₹462 to ₹487 per equity share
Delhivery Ltd IPO listing
Since the IPO of Delhivery Ltd IPO is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)
Delhivery Ltd IPO objectives
According to the Red Herring Prospectus filed by the company, it aims to utilize the Net Proceeds towards the following objects:
- Funding organic growth initiatives
- Funding inorganic growth through acquisitions and other strategic initiatives
- General Corporate Purposes
Delhivery Ltd Key Strengths
- The largest and fastest growing fully-integrated logistics services player in India by revenue as of FY21
- Operates 21 fully & semi-automated sortation centers & 82 gateways across India (excluding Spoton) as of Dec’21
- Operates a pan-India network and provide services in 17,488 PIN codes, as of Dec’21
- Follows an asset-light model, with all logistics facilities leased from third parties
- Operates a proprietary logistics operating system to offer services to wide variety of customers
Delhivery Ltd IPO Risks
- Highly fragmented industry with intense competition
- Heavy reliance on network partners and other third parties as it operates asset light model
- E-commerce customers contributed 62% to 9MFY22 revenue
- Top 5 customers accounted for 44% of 9MFY22 revenue
Conclusion
With the logistics sector getting strong, you might be surely excited to experience how the Indian Stock Market reacts to this new emerging sector. If you wish to become a part of this growing Indian Market, you will need to have an online demat and trading account, which will help you get shares of your favourite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.
If you already have an existing account, you can start your online trading and invest in the upcoming IPO's.
With a plethora of companies coming forward with their own IPOs in quick succession, you can keep a track of all the upcoming IPOs by regularly following our IPO calendar.