Delhivery raises Rs 2,347 crore from 64 anchor investors ahead of IPO

  • May/23/2022

Delhivery raises Rs 2,347 crore from 64 anchor investors ahead of IPO

Logistic and supply chain startup Delhivery has raised Rs 2,347 crore from 64 anchor investors ahead of its initial public offering (IPO), which will open for subscription on Wednesday, May 11.


About 48 million shares were allotted to anchor investors at Rs 487 a piece, as the upper end of the price band for the IPO, according to investment bankers.


Some of the foreign investors who participated in the anchor share allotment were Tiger Global, Bay Capital, Steadview, Fidelity, Baillie Gifford, Schroders, Amansa, Aberdeen Standard Life, GIC, Government Pension Fund Global and Invesco HK, said the banking sources.


About 14.59 million shares were allotted to seven domestic mutual funds such as HDFC, SBI, ICICI Prudential, Franklin Templeton, Invesco, Nippon and Mirae.


The Rs 5,235 crore public issue of Delhivery will close for subscription on Friday, May 13. The price band of the offer has been fixed at Rs 462 to Rs 487 per share. Bids can be made for a minimum of 30 shares and multiples of 30 shares thereafter.


The offer comprises a fresh issue of shares aggregating up to Rs 4,000 crore and an offer for sale by some existing company shareholders aggregating up to Rs 1,235 crore.


Some of the domestic brokerages have recommended subscribing to Delhivery IPO.


“We believe Delhivery’s asset light business model and its cutting?edge engineering and automation capabilities and its new age technologies will help the company leverage its operating efficiencies and improve profitability in the coming years,” Yes Securities said in a note.


Delhivery will utilise Rs 2,000 crore from the issue proceeds to fund organic growth initiatives such as building scale in existing business lines, developing new adjacent business lines, expanding network infrastructure, and upgrading and improving our proprietary logistics operating system. Further, it will utilise around Rs 1,000 crore for funding inorganic growth opportunities through acquisitions and other strategic initiatives.