CCI Approves Fedex India's Minority Stake Buy In IPO-Bound Delhivery

SUMMARY

In July this year, Delhivery announced the raising of $100 Mn from FedEx

The anti-trust body also approved the acquisition of certain operating assets of FedEx India and TNT India by Delhivery

On November 2, Delhivery had filed its draft red herring prospectus for INR 7,460 Cr.

The Competition Commission of India (CCI) has approved FedEx India’s minority stake buy in IPO bound logistics unicorn Delhivery.

The anti-trust body has also approved the acquisition of certain operating assets of FedEx India and TNT India Private Limited (TNT) by Delhivery, said an official statement. TNT India is part of the FedEx group and also provides logistics services inter alia in the form of express parcel deliveries, special services, and freight services.

“The Competition Commission of India (CCI) approves acquisition of a minority stake in Delhivery Limited (Delhivery) by FedEx Express Transportation and Supply Chain Services (India) Private Limited (FedEx India),” it said.

In July this year, Delhivery announced the raising of $100 Mn from FedEx at a valuation of $3 Bn.

As part of the agreement, FedEx Express will enter into a long-term commercial pact with SoftBank-backed Delhivery.

While FedEx Express will focus on international export and import services to and from India, Delhivery will, in addition to FedEx, sell FedEx Express international products and services in India and provide pick-up and delivery services across the country, as per the agreement.

The approval comes around three weeks after the Gurugram-based unicorn filed its draft red herring prospectus for INR 7,460 Cr.

It will include a fresh issue of shares worth up to INR 5,000 Cr and an offer-for-sale of up to INR 2,460 Cr. It is worth noting that these offers can change as the startup heads towards its listing.

Masayoshi Son’s SoftBank will be offloading shares worth INR 750 Cr, whereas Carlyle Group is likely to sell shares worth INR 920 Cr. Times Internet will be selling shares worth INR 330 Cr.

During the first quarter (April-June) of the current financial year (FY22), the logistics unicorn recorded a consolidated net loss of INR 129.58 Cr.

Its revenue from operations for the same period was INR 1,317.72. The DRHP, however, did not mention the financials for the corresponding quarter of the previous fiscal (FY21).