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Delhivery Stock Surged Above Rs.400 After Canadian Pension Fund Offloads Stake

16 July 20243 mins read by Angel One
CPP Investments is set to exit Delhivery by selling its 3.17% stake at a discounted price range of Rs 378–389 per share, despite this, Delhivery stock surged above Rs.400.
Delhivery Stock Surged Above Rs.400 After Canadian Pension Fund Offloads Stake
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Delhivery is a comprehensive logistics solutions provider, offering a wide range of services including the delivery of express parcels and heavy goods, PTL and TL freight, warehousing, supply chain solutions, and cross-border express freight services. The company also excels in supply chain software and provides value-added services such as e-commerce return handling, payment collection and processing, installation and assembly services, and fraud detection.

Details of the Share Sale

The Canada Pension Plan Investment Board, recently divested a portion of its stake in Delhivery, a logistics services provider, amounting to approximately 2.77 percent, valued at about $110 million. This transaction, as per exchange disclosures, reduces CPPIB’s current ownership in Delhivery to 5.96 percent. Delhivery, backed by prominent investors including Softbank, Nexus Ventures, Steadview Capital, and Fedex, has seen previous dilution of Softbank’s holdings through block deals conducted in November and March 2023. The move underscores CPPIB’s strategic adjustments in its investment portfolio within India’s dynamic logistics sector, reflecting ongoing developments and investor strategies in the market.

Stock Performance and Market Reaction

Delhivery’s stock saw a rise of up to 3.02%, reaching Rs 403.65 per share., the stock was trading 0.74% higher at Rs 394.7 per share, in contrast to a 0.12% decline in the benchmark Nifty index, The stock has declined by 2% over the past one year and has a 52 week high and 52 week low of Rs.488.00 and Rs.354.20 per share respectively. 

Conclusion: The exit of CPP Investments from Delhivery marks a significant shift for the logistics solutions provider. The market’s positive reaction to the news highlights investor confidence in Delhivery’s future prospects despite the discounted share price offered in the block deal. The stock of Delhivey currently trades flat at Rs.389.20 per share after pairing all of its morning session gains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions

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