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Delhivery IPO – Details

Delhivery received approval from SEBI to launch its IPO back in January 2022. Thus, the company will soon hit the stock market via a public issue to raise an amount of Rs. 7,460 crores. This public offering will consist of a fresh issue of equity shares worth Rs. 5,000 crores. In addition, existing stakeholders will offload shares amounting to Rs. 2,450 crores.

The company has also reserved a percentage of shares for Retail Individual Investors (RII), Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII). The reserved percentages of these investor categories are 10% for RII, 75% for QIB, and 15% for NII. Find other details of IPO in the table below:

Issue Type

Book Built Issue IPO

Listing at

BSE & NSE

Price Band

462-487

Minimum Order Quantity

30 Shares

Face Value

₹1

per equity share

Market Lot

30 Shares

Issue Type

Book Built Issue IPO

Listing at

BSE & NSE

Price Band

462-487

Minimum Order Quantity

30 Shares

Face Value

₹1

per equity share

Market Lot

30 Shares

Listing at NSE, BSE

Delhivery IPO Important Dates

IPO Open Date May 11, 2022
IPO Close Date May 13, 2022
Basis of Allotment Publication Date May 19, 2022
Initiation Of Refunds May 20, 2022
Credit Of Shares To
Demat Account
May 23, 2022
Minimum Order Quantity 30 Shares

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Delhivery IPO IPO Latest News and Subscription Status Today [Live]

At 5:05:00 PM.
  • This IPO has been subscribed 1.63x by 5:05 PM. on Day 3
  • It is a public issue of 6,25,41,023 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 2.66x
  • (NII) Non-institutional buyers: 0.30x
  • (RII) Retail Individual buyers: 0.57x
  • Employees: 0.27x
At 10:50:00 AM.
  • This IPO has been subscribed 0.28x by 10:50 AM. on Day 3
  • It is a public issue of 6,25,41,023 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.37x
  • (NII) Non-institutional buyers: 0.02x
  • (RII) Retail Individual buyers: 0.44x
  • Employees: 0.16x
At 5:05:00 PM.
  • This IPO has been subscribed 0.23x by 5:05 PM. on Day 2
  • It is a public issue of 6,25,41,023 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.29x
  • (NII) Non-institutional buyers: 0.01x
  • (RII) Retail Individual buyers: 0.40xx
  • Employees: 0.12x
At 10:50:00 AM.
  • This IPO has been subscribed 0.22x by 10:50 AM. on Day 2
  • It is a public issue of 6,25,41,023 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.29x
  • (NII) Non-institutional buyers: 0.01x
  • (RII) Retail Individual buyers: 0.34x
  • Employees: 0.09x
At 5:05:00 PM.
  • This IPO has been subscribed 0.21x by 5:05 PM. on Day 1
  • It is a public issue of 6,25,41,023 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.29x
  • (NII) Non-institutional buyers: 0.01x
  • (RII) Retail Individual buyers: 0.30x
  • Employees: 0.06x

About Delhivery

Founded in 2011, Delhivery is the fastest growing logistics and delivery company in India. It offers various services like heavy goods delivery, express parcel delivery, truckload freight, cross border express, supply chain solution, supply chain software and freight services. The company has successfully diversified its base to reach 21,342 active customers. In addition, it is currently providing service across 17,000 pin codes.

The reason behind this expansion is the top-notch logistic infrastructure and the large network that Delhivery holds. Moreover, the company has 86 gateways, 21 automated sort centres, 2,235 self-managed centres, 71 fulfilment centres, a working team of 66,000 people and 1,100 constellation partner centres. With SEBI’s approval, Delhivery is now all set to float its IPO.

Delhivery IPO Objectives

The following are the objectives that Delhivery plans to fulfil through this IPO:

- Provide funds for organic growth initiatives.
- Meet inorganic growth requirements by allocating funds to acquisitions and strategic initiatives.
- Provide funds for general corporate purposes.

Why should you invest in Delhivery IPO?

Investing in Delhivery IPO is a lucrative option in many ways. Some of them are mentioned briefly here:

  • The company has a vast network in domestic sectors. Moreover, it is planning to expand its customer base to international boundaries.
  • Delhivery has a firm grip on IoT. In fact, the company has a self-developed logistic system that runs on a real-time basis. Moreover, it accesses information by itself through the proprietary network and environmental sources.
  • It has diversified its services to give its customers maximum support. For example, it has its wings expanded in verticals like consumer electronics, FMCG, consumer durables, automotive, manufacturing, lifestyle, retail, etc.
  • Delhivery collects, stores, processes, analyses, and structures transaction data in large quantities. So, there is no glitch in the technical part. In other words, its intelligence capabilities are one of its biggest assets.
  • It maintains a good brand image by providing only high-quality and on-time logistic service.

Financial highlights

While filing its prospectus with the market regulator SEBI (Securities and Exchange Board of India), Delhivery shared the following financial highlights. The table below depicts the same:

Financial Year Total Assets in Millions Total Revenue in Millions Profit After Tax in Millions
FY 2021 Rs. 45,977 Rs. 38,382 Rs. (4,157)
FY 2020 Rs. 43,573 Rs. 29,886 Rs. (2,689)
FY 2019 Rs. 40,625 Rs. 16,948 Rs. (17,728)

How to apply for Delhivery IPO?

There are two ways by which investors can choose to start trading. One is through UPI, and the other is with the help of a Demat account. The processes are discussed below:

UPI

  • Link your bank account to a UPI ID.
  • Register your UPI id with your Demat account.
  • Subscribe for Delhiivery IPO and approve the payment on your UPI ID.

Demat Account

Delhivery IPO - Noteworthy Highlights

The noteworthy highlights that individuals must be aware of before investing in Delhivery IPO include:

  • Delhivery is one of the fastest-growing and fully-integrated logistic service providers in India.

  • It recently achieved the target of delivering an order of 289.20 million express parcels.

  • In 2022, 64% of the revenue created by the company was from loyal customers that have been transacting for three years.

  • The company has also formed a strategic alliance with FedEx.

  • Moreover, Delhivery has introduced many value-added services, including electronic, e-commerce, lifestyle, healthcare and retail, consumer durables, etc.

Delhivery IPO - SWOT Analysis

Strengths

  • According to the RedSeer report, Delhivery shows rapid growth in its revenue graph. In fact, currently, the company has a CAGR of 48.49%.
  • It has made various accomplishments over its operating timespan. For example, it has processed 47.37 mn orders received in the freight centre and carried 46,878 truckload movements.
  • The company has a strong team containing 474 engineers, product professionals and data scientists. Not only this, but they are also well-versed in managing orders, handling bills and tracking analytics.
  • Delhivery maintains a dynamic and dense mesh of networking. It has even invested a lot in automation and technology to establish a fast, agile and efficient service chain.
  • It follows an asset-light business model. So, it is easy to scale up the volume while maintaining low cost and high flexibility.
  • As the company provides service in diversified sectors, it holds a large customer base. Additionally, most of them are the top e-commerce players in India.

Weaknesses

  • The company has a direct dependency on the growth of the e-commerce sector.
  • Delhivery has to rely on its networking partner and other third party involved in its operation to complete its business model.
  • It holds a negative cash flow under 'investing' and 'operating' heads for 2019 and 2020.
  • The company is always at risk of shipment and transportation errors. Also, there is a risk of non-recovery of cash-on-delivery orders, which the insurance company does not cover.

Opportunities

  • Delhivery has the scope to expand its wings to international borders.
  • The company can utilise the funds raised through this IPO for acquisition and strategic alliance, which will further add to the overall growth of Delhivery.
  • With the introduction of several value-added services, the company plans to enhance various aspects. It includes an interlocking flywheel strategy, network design, an ecosystem of partners, a sophisticated technology system, etc.

Threats

  • The company runs on a scaled, unified and automated infrastructure. So, if Delhivery becomes unsuccessful in expanding this structure, its growth will become stagnant.
  • Any issue from the end of a third party can affect the overall brand image of the company.
  • It has to maintain a lot of data to complete its operation. So, any loss of data can hamper its production quality.
  • Lockdown due to a pandemic can directly affect the business of this company.

Competitive Analysis: Market Peers

Delhivery, the largest logistic service provider in India, has the following three market peers as its direct competitor:

Company Name Market Capitalisation PAT Growth %
Blue Dart Express Limited Rs. 15,484.49 crores (5.58)
Mahindra Logistic Limited Rs. 3,678.68 crores (31.07)
TCI Express Limited Rs. 6,925.66 crores 26.66

Delhivery IPO FAQs

Who are the leading managers of Delhivery IPO?

The following are the lead managers of Delhivery IPO:
  • BofA Securities India Limited.
  • Morgan Stanley India Company Private Limited.
  • Kotak Mahindra Capital Company Limited.
  • Dealer subscriptions generate 15% of its revenue, ranging between Rs. 45,000 – Rs. 1,00,000.
  • Citigroup Global Market India Private Limited

When did SEBI send the observation letter to Delhivery?

After filing its DRHP in November 2021, Delhivery received the observation letter from SEBI on 13 January 2022.

How many shares are the co-founders of Delhivery offering in the IPO?

Kapil Bharati, Suraj Saharan, and Mohit Tandon are the co-founder of Delhivery, and they are offering shares worth Rs. 14 crores, Rs. 6 crores and Rs. 40 crores, respectively.

Which investors are going to divest shares of Delhivery under the OFS category?

SoftBank and Carlyle group, along with the company co-founders, will divest shares of Delhivery under the OFS category.

Who are the promoters of the Delhivery?

Since Delhivery is a professionally managed company, it has not created an identified promoter position yet.

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