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Exclusive: Ahead Of IPO Delhivery Converts Into Public Company

Exclusive: Ahead Of IPO Delhivery Converts Into Public Company

The logistics unicorn is aiming for a $1 Bn IPO and is likely to file its draft red herring prospectus this month

Delhivery is also making amendments to its existing Employee Stock Option Plans (ESOP) to comply with the guidelines issued by the Ministry of Corporate Affairs and SEBI Listing Regulations

Last month Delhivery raised $125 Mn from Lee Fixel’s venture capital Addition

Ahead of its initial public offering (IPO), logistics unicorn Delhivery’s shareholders have approved the conversion of the startup into a public company.

As per the regulatory filings accessed by Inc42, Delhivery Private Limited will be converted into Delhivery Limited. The logistics unicorn is aiming for a $1 Bn IPO and is likely to file its draft red herring prospectus this month. 

Conversion of a private limited company into a public company is a mandatory step for a company which wants to list on the stock exchange. 

The startup is also splitting its equity shares in a 1:10 ratio. The filings further revealed that Delhivery’s authorised share capital is INR 119.25 Cr. As the next step, the company might also increase its authorised share capital, just like other startups that have filed their DRHPs in recent months. 

Delhivery is also making amendments to its existing Employee Stock Option Plans (ESOP) to comply with the guidelines issued by the Ministry of Corporate Affairs and SEBI Listing Regulations.

The development comes days after Delhivery issued bonus shares to shareholders. The startup decided to allot fully paid up 1.68 Cr bonus shares worth INR 10, to equity shareholders in the ratio of 9:1.

Back then, the logistics unicorn had allotted 1,68,46,803 shares of INR 10 each fully paid up — taking the total number of shares from 18,71,868 to 1,87,18,670 bonus shares, which will be allotted to 90 existing equity shareholders of the company.  

Last month, Inc42 exclusively reported that Delhivery was raising investment from former Tiger Global executive Lee Fixel’s venture capital Addition. In the last week of September, the startup confirmed the $125 Mn from the venture capital.

The new round came within four of its  $275 Mn Series H round which was led by Fidelity Management and Research Company along with participation from other public funds.

Founded by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati and Suraj Saharan in 2011, the Gurugram-based startup offers logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, end-to-end supply chain services and technology services.

The logistics giant claims to have fulfilled over 850 Mn transactions since its inception and works with over 10,000 direct customers including SMEs and enterprises. 

Delhivery has now joined the likes of Snapdeal and Pine Labs who are yet to file their prospectus with the market regulator. The Indian startup ecosystem is witnessing nothing less than a watershed moment, where a slew of startups are awaiting to get themselves listed on the stock exchanges. 

Foodtech giant Zomato, automobile marketplace CarDekho, SaaS-based startup Freshworks, online ticketing platform EaseMyTrip and RateGain have already listed themselves on the public market this year.

Digital payments platform Paytm, ecommerce marketplace Nykaa, Gurugram-based Mobikwik, online ticketing platform ixigo and recently the hospitality unicorn OYO have filed their DRHP with the market regulator. 

Edtech decacorn BYJU’s and cab aggregator OLA are likely to list themselves next year. 

The story appeared first on Inc42 on October 6 at 10:25 pm

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