Delhivery IPO opens today: Price band, subscription dates and 5 key things to know before bidding

Delhivery has fixed a price band of Rs 462-487 a share. Investors will be allowed to bid for a minimum of 30 equity shares and in multiples thereof. 

Delhivery IPO has opened for subscriptions today (May 11). Investors can place their bids for three days till May 13.

Delhivery plans to utilise the funds towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives and for general corporate purposes, according to a PTI report. 

Delhivery IPO consists of fresh issuance of equity shares worth Rs 4,000 crore. The IPO also consists of an offer for sale (OFS) component of Rs 1,235 crore by existing shareholders. 

 

As part of the OFS, investors Carlyle Group and SoftBank as well as Delhivery's co-founders will divest their stake in the logistics company. Here’s a brief breakup: 

 

- CA Swift Investments will offload shares worth Rs 454 crore. 

 

- SVF Doorbell (Cayman) Ltd, an arm of Softbank Group will sell shares to the tune of Rs 365 crore. 

 

- Deli CMF Pte Ltd, a wholly owned subsidiary of private equity fund China Momentum Fund, L.P. will offload shares worth Rs 200 crore. 

- Times Internet will sell shares worth Rs 165 crore.

 

Further, co-founders of Delhivery Kapil Bharati, Mohit Tandon and Suraj Saharan will sell shares worth Rs 5 crore, Rs 40 crore and Rs 6 crore respectively.

 

A total of 75 per cent of Delhi IPO shares have been reserved for qualified institutional investors. The company has also reserved 15 per cent of IPO shares for non-institutional investors and the remaining 10 per cent for retail investors.

Delhivery has set aside shares worth Rs 20 crore for eligible employees. Such workers will get a discount of Rs 25 per equity stock during the bidding process. 

According to Samco Securities, the Indian logistics business is poised for tremendous expansion, and the IPO-bound Delhivery, with its focus on the fast-growing e-commerce market, has promising growth potential ahead of it. 

 

"We expect that the company will continue to experience increasing cost pressures, at least in the short term, due to rising fuel costs," Yesha Shah, Head of Equity Research at Samco Securities, said.