Exclusive: IPO-Bound Delhivery’s Former & Current Employees Convert ESOPs Worth INR 230 Cr To Shares

Delhi NCR-based logistics unicorn Delhivery which is awaiting SEBI nod for its INR 7,460 Cr IPO, has allotted 12,17,500 equity shares worth INR 230.8 Cr (upon ESOP conversion) to 87 current and former employees.

As per Delhivery’s February 2021 regulatory filing, the company has priced its equity shares at a premium of INR 18,965. However, in its run up to the IPO, Delhivery has split its share in 1:10 ratio, thus they are priced at INR 1,896.5 apiece. In February, Delhivery’s nominal price for equity share was INR 10; now, it has been reduced to INR 1. 

As per the company’s latest regulatory filings, while the startup has allotted the majority of its equity share for INR 16.28 (including premium), it has also distributed the equity shares at INR 4.53, INR 11.63, and INR 29.85. 

Delhivery has alloted most of the equity shares upon conversion to its senior vice president of supply chain Sanjay Rao. The company has allotted him 1,00,000 equity shares worth INR 18.9 Cr, followed by Sabyasachi Senapati, who received 91,200 equity shares for INR 14 lakhs, are now worth INR 17.2 Cr. 

Former senior director of transport operations who is now vice president of Unacademy,  Hrishikesh Sharma has been allotted 72,000 equity shares which are now worth INR 13.6 Cr.

Employees have paid a total of INR 1.9 Cr for receiving these equity shares. 

Earlier, Delhivery had allotted 39,99,400 equity shares upon conversion of ESOPs to its employees. 

Founded in 2011, Delhivery 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. 

In September, the startup in its pre-IPO round picked up $125 Mn from former Tiger Global executive Lee Fixel’s Addition. In June, the logistics unicorn picked up $100 Mn from global logistics giant FedEx. As part of the deal, FedEx Express will enter into a long-term commercial pact with Delhivery.

Delhivery’s IPO Offer

Earlier this month, Delhivery filed its prospectus with market regulator SEBI to raise INR 7,460 Cr from the public market. Delhivery’s offer includes a fresh issue of shares worth up to INR 5,000 Cr and an offer-for-sale of up to INR 2,460 Cr. It is worth noting that these offers can change as the startup heads towards its listing. 

The startup’s largest shareholder SoftBank will be offloading shares worth INR 750 Cr, whereas Carlyle Group is likely to sell shares worth INR 920 Cr. Times Internet will be selling shares worth INR 330 Cr. 

Three founders — Kapil Bharati, Mohit Tandon, and Suraj Saharan will be offloading shares worth INR 14 Cr, INR 40 Cr, and INR 6 Cr, respectively. 

The startup widened its loss of INR 415.5 Cr in FY21, a 55% rise from INR 267.9 Cr in FY20.

The logistic unicorn’s total income rose by 28% from INR 2,988.6 Cr in FY 20 to INR 3,838.2 Cr in FY 21. Its expenses widened from INR 3,257.4 Cr in FY 20 to INR 4,212.7 Cr in FY 21. 

On the day, Delhivery filed its DRHP, its rival Ecom Express converted into a public company. While the offer and other details are unknown but according ​​to Inc42 sources, the logistics startup intends to raise funds at $1.5 Bn to -$1.8 Bn valuation.