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Delhivery may introduce IPO this month at reduced size of Rs 5.5k crore
Delhivery, an integrated logistics firm, is likely to launch its initial public offering this month, said investment bankers. The company may cut the issue size to Rs 5,500 crore from Rs 7,460 crore it had planned earlier due to challenging market conditions, said one person aware of the matter.
The Gurgaon-based startup held a board meeting on Saturday to discuss whether it should go ahead with the IPO this month. The board cleared the plan and the offer is likely to launch after the LIC IPO subscription window closes on May 9, said sources aware of the matter.
"The idea is to open the subscription window after LIC so institutional investors can finalise allocations for Delhivery IPO basis the allotments they get for LIC," said a person aware of the matter. Delhivery's IPO was cleared by Sebi in January but the company had to postpone the share sale due to weak market sentiment.
Delhivery’s earlier IPO plan was to issue fresh shares worth Rs 5,000 crore and an offer for sale by existing shareholders to the tune of Rs 2,460 crore. The firm will likely revise this considering the reduction in offer size, said one of the persons quoted above
"We want to go public when our company is well understood. While valuation is one of the factors (for the delay), it is not a critical factor – since we do not require the capital, and market conditions currently are bumpy,” Sahil Barua, cofounder and chief executive of Delhivery, said at the Economic Times Startup Awards 2021 in March.
Kotak Mahindra Capital, Morgan Stanley, BofA Securities, and Citigroup are the issues' bankers.
According to the company’s draft red herring prospectus, the company’s largest shareholders are SoftBank Holding with a 22.78% stake, Nexus Ventures with a 9.23% stake, and CI Swift Holdings (Carlyle) with a 7.42% stake. Kapil Bharati holds 1.11%, Mohit Tandon owns 1.88% and Suraj Saharan has a 1.79% stake in the company.
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