Logistics and supply chain company, Delhivery witnessed last-minute demand from qualified institutional buyers that pushed through its Rs 5,235 crore IPO on the final day of the subscription. Delhivery IPO has shown a tepid response till the second day of the public offering, however, by the third day – the issue made a narrow escape and got fully subscribed. The share allotment date for Delhivery IPO is likely to be done on May 19, which is Thursday. For those investors who do not win bids, a refund will be credited on May 20 while credits to demat account will be done on May 23. The Listing date of Delhivery IPO is tentatively May 24.
Delhivery IPO Subscription Status
As of the last of its opening on Friday, the Delhivery IPO received a decent response from bidders who put up bids for 10,17,04,080 shares against 6,25,41,023 shares up on sale. The issue was booked 1.63 times on Day 3, mainly due to bumper response of the QIBs. Institutional buyers bid for 2.66 times the shares allotted for them, while non-institutional subscribers booked just 30 per cent of the portion reserved for them. Retail individual investors subscribed to 57 per cent of the shares allotted to them.
Ahead of the IPO, Delhivery on Monday, 9 May 2022, finalized allocation of 4,81,87,860 equity shares to anchor investors at an allocation price of Rs 487 per share, aggregating to Rs 2,346.74 crore.
Delhivery IPO Financials
Delhivery has never reported a profit, according to its share-sale prospectus. The company made a loss of Rs 891.14 crore for the nine months ended December 2021 and posted a Rs 415.7 crore loss in FY21. Revenue was Rs 4,911 crore in the nine months ended December and Rs 3,838 crore in FY21. It reported a negative free cash flow of Rs 246 crore in FY21 versus Rs 848 crore in FY20. Freight, handling and servicing costs rose to Rs 3,480 crore in the first nine month of FY22 from Rs 2,026 crore in FY21.
Delhivery IPO GMP Today
The unlisted shares of Delhivery IPO are also not doing well at the grey market given the muted response from most investors other than QIBs. The Delhivery IPO has been seeing a very low interest in the grey market. Experts say, this is in sync with the time when markets are volatile.
Yes Securities believes the company’s asset-light business model, cutting‐edge engineering, and automation capabilities will help it leverage operating efficiencies and improve profitability in coming years. The brokerage has listed a unified infrastructure network, proprietary technology stack and capabilities, vast amount of data intelligence and R&D, and strong relationship with a diversified customer base as key positives of the company.
Brokerage house Angel Brokerage said that for 9MFY22, the company has reported an EBITDA loss of Rs 232 crores and a net loss of Rs 891 crores. In terms of revenue, Delhivery posted robust growth of 82 per cent during this period and it is expected to turn EBITDA positive by the FY22-end. A slowdown in e-commerce services in India will impact the company due to its huge dependence on express parcel services, and concentration of select customers. Its top-five customers contribute to 41 per cent of the total revenue.
Delhivery is a fully integrated logistics player in India providing a full range of logistics services, including express parcel and heavy goods delivery, part truckload freight, truckload freight, warehousing, supply chain solutions, cross border express and freight services. Apart from this it also offers supply chain software and value-added services, such as e-commerce return services, payment collection and processing, installation and assembly services and fraud detection.
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