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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 |
Delhivery IPO IPO Latest News and Subscription Status Today [Live]
- 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.
- (QIB) Qualified institutional buyers: 2.66x
- (NII) Non-institutional buyers: 0.30x
- (RII) Retail Individual buyers: 0.57x
- Employees: 0.27x
- 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.
- (QIB) Qualified institutional buyers: 0.37x
- (NII) Non-institutional buyers: 0.02x
- (RII) Retail Individual buyers: 0.44x
- Employees: 0.16x
- 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.
- (QIB) Qualified institutional buyers: 0.29x
- (NII) Non-institutional buyers: 0.01x
- (RII) Retail Individual buyers: 0.40xx
- Employees: 0.12x
- 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.
- (QIB) Qualified institutional buyers: 0.29x
- (NII) Non-institutional buyers: 0.01x
- (RII) Retail Individual buyers: 0.34x
- Employees: 0.09x
- 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.
- (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
- If you are an existing Angel One user, Apply Now!
- If you’re a new investor, Open a DEMAT Account for free with Angel One and begin your investment journey.
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?
- 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
