Delhivery IPO: Total Subscription At 4%, Retail Covered 23% In The First Two Hours

Logistics unicorn Delhivery is set to join the ever-growing list of Indian startups aiming to enter the big leagues with an initial public offering (IPO).

The Gurugram-based startup’s IPO went live on May 11, after it had decided to reduce its offer for sale (OFS) by more than 30%.

Delhivery plans to raise INR 5,235 Cr via the public issue. The startup will raise INR 4,000 Cr via fresh issue of shares and INR 1,235 Cr through an offer for sale (OFS).

According to the company’s filings, 48 Mn shares (4,81,87,860 to be precise) were allotted 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 companies Blue Dart Express, TCI Express, and Mahindra Logistics.

Ahead of its IPO, logistics unicorn Delhivery has raised INR 2,347 Cr from 64 anchor investors, including Tiger Global, Bay Capital, Steadview, and Fidelity. 

After two hours of listing, the Delhivery IPO has opened to a routine start, with total subscriptions hovering at 4%. The retail portion was subscribed to 23%, while the employee share quota has been subscribed to 4%.

The lukewarm start could also be a result of the mega LIC IPO that closed on May 9, which could have taken away the liquidity from the market.

The LIC PO was subscribed 2.95 times and generated bids worth INR 43,933 Cr. In the absence of liquidity in the market, the much-touted debut could go astray for the startup.

However, many of the domestic brokerage firms have recommended subscribing to Delhivery IPO. Yes Securities said, “We believe Delhivery’s asset-light business model and its cutting‐edge engineering and automation capabilities and its new-age technologies will help the company leverage its operating efficiencies and improve profitability in the coming years.”