Delhivery IPO: Day 1 Closes With Total Subscription At 21%, Retail Portion Subscribed 30%

The initial public offering (IPO) of logistics unicorn Delhivery received a tepid response on the first day of the offer, with an overall subscription at 21%. The day started off slowly, with just a 4% subscription during the first two hours.

At the day’s end, the retail portion saw the highest subscription at  30%. The qualified Institutional Investors (QII) portion followed closely with a 29% subscription.

The employees’ quota of the public offer was subscribed to around 6%, while the Non-Institutional Buyers (NIB) portion was only subscribed to 1%.

The Gurugram-based startup has reduced its offer for sale (OFS) by more than 30%. It is looking to raise INR 5,235 Cr via the IPO as against its earlier plan of raising INR 7,640 Cr. 

The Delhivery IPO consists of the issue of fresh shares worth INR 4,000 Cr and an OFS of INR 1,235 Cr. Times Internet, SoftBank and Carlyle will exit the startup through the OFS.  The price band for the IPO has been fixed at INR 462-487.

Delhivery recently raised INR 2,347 Cr from 64 anchor investors, including Tiger Global, Bay Capital, Steadview, and Fidelity, on Tuesday.

Delhivery allotted over 48 Mn shares to anchor investors at INR 487, the upper price band of the IPO. At the upper end of the price band, the unicorn will have a valuation of INR 35,283 Cr.

Upon successful listing on BSE and NSE, Delhivery will join other listed peers like Blue Dart Express, TCI Express, and Mahindra Logistics.

According to its RHP, Delhivery’s total income stood at INR 4,911.4 Cr in the nine months to December 31, 2021.

During the same period, Delhivery recorded a loss of INR 891.13 Cr, a 200% jump as compared to the same period of the previous fiscal year. Further, the unicorn is spending INR 1.18 for every INR 1 it is clocking in as income.

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