Delhivery IPO: Qualified Investors Boost Total Subscription To 1.63 Times

SUMMARY

Delhivery IPO opened slowly, with only 23% subscription during the first two days of the offer going live

At the offer’s close, Delhivery’s IPO stood at 163% subscription, primarily driven by the QIB segment, which was oversubscribed to 2.26 times

The price band for the IPO is fixed at INR 462-487. At the upper band of the price band, the startup would be valued at INR 35,283 Cr

Gurugram-based logistics unicorn Delhivery has witnessed a significant jump in investment and subscription as the qualified institutional buyers (QIB) segment oversubscribed to take the total subscription of the IPO to over 100%.

At the offer’s close, Delhivery’s IPO stood at 163% subscription, primarily driven by the QIB segment, which was oversubscribed to 2.26 times the offer size. The retail investors’ portion saw 57% subscription, the second most out of all the segments.

The Non-Institutional Buyers (NIB) portion also recovered significantly over the third day, jumping from a mere 1% subscription to 30%, the third most across the total offer. Lastly, the employees’ quota increased to 27%.

During the first two days, the Delhivery IPO saw an underwhelming response as it was subscribed to only 23% by the end of day 2, a mere 2% above its day 1 subscription tally.

The logistics unicorn had moved to reduce its offer for sale (OFS) by more than 30%, owing to market volatility triggered by the recent geopolitical events. It is looking to raise INR 5,235 Cr via the IPO as against its earlier plan of raising INR 7,640 Cr.

The move came in light of the negative global market sentiment as many Indian tech startups are waiting for better tides to sail the seas of the stock market.

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 completely exit from the startup through the OFS. The price band for the IPO has been fixed at INR 462-487.

A few days before the IPO, Delhivery raised INR 2,347 Cr from 64 anchor investors, including Tiger Global, Bay Capital, Steadview, and Fidelity.

Delhivery allotted more than 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 such as Blue Dart Express, TCI Express, and Mahindra Logistics.

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

During the same period, it 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.