Delhivery Gets SEBI Nod For INR 7,640 Cr IPO

The Securities and Exchange Board of India (SEBI) has approved logistics unicorn Delhivery to file its INR 7,640 Cr initial public offering (IPO), according to media reports. Inc42 had earlier reported on Delhivery’s plans to raise INR 7,640 Cr through an IPO including a fresh issue of shares worth INR 5,000 Cr and an offer-for-sale (OFS) of INR 2,460 Cr. Softbank was to be offloading shares worth INR 750 Cr while Carlyle Group was likely to sell shares worth INR 920 Cr. Times Internet was also to liquidate part of its position— almost INR 330 Cr.

SUMMARY

This IPO will probably include a fresh issue of shares worth INR 5,000 Cr and an offer-for-sale of INR 2,460 Cr

During the first quarter of the ongoing financial year (FY22), the startup recorded a consolidated net loss of INR 129.58 Cr

The outstanding debt of the startup and its subsidiaries on a consolidated basis stood at INR 398.75 Cr

The Securities and Exchange Board of India (SEBI) has approved logistics unicorn Delhivery’s plan to file its INR 7,640 Cr initial public offering (IPO), according to media reports.

Inc42 had earlier reported on Delhivery’s plans to raise INR 7,640 Cr through an IPO including a fresh issue of shares worth INR 5,000 Cr and an offer-for-sale (OFS) of INR 2,460 Cr.

Softbank was to be offloading shares worth INR 750 Cr while Carlyle Group was likely to sell shares worth INR 920 Cr. Times Internet was also to liquidate part of its position— almost INR 330 Cr.

Delhivery’s three founders—Kapil Bharati, Mohit Tandon, and Suraj Sahara— were to offload shares worth INR 14 Cr, INR 40 Cr and INR 6 Cr respectively.

During the first quarter of the ongoing financial year (FY22), the startup recorded a consolidated net loss of INR 129.58 Cr. It received revenue of INR 1,317.72 Cr from its operation during the same period. Its draft red herring prospectus (DRHP) did not mention the financials for the corresponding quarter in the previous financial year (FY21).

The total expenditure during the first quarter of FY22 amounted to INR 1,493 Cr. Freight handling and servicing, and employee benefits expenses formed a bulk of its expenses at INR 867.9 Cr and INR 206.45 Cr.

In the previous financial year (FY21), Delhivery registered a nearly 55% increase in its net losses at INR 415.74 Cr, compared to INR 268.92 Cr in FY20. It had, however, cut down its losses in FY20 from a massive INR 1,783.30 Cr net loss in FY19.

The outstanding debt of the startup and its subsidiaries on a consolidated basis stood at INR 398.75 Cr, out of a total sanctioned amount of INR 686.29 Cr as of 31 August 2021.