Delhivery is a step closer to file of its IPO, converts to a public entity

• The Gurgaon-based startup has already converted itself to a public limited entity to raise capital from the general public.
• The development comes only a few days after Delhivery issued bonus shares to all of its 90 shareholders.
• Delhivery plans to take $1 billion from its IPO in the financial year 2022 that ends in March.

Delhivery is a step close to filings the preliminary paperwork for its initial public offering (IPO) scheduled for this financial year. The Gurgaon-based startup has already converted itself to a public limited entity, which will allow it to raise capital from the general public.

A private limited entity cannot list in the stock exchange and has to convert into a public limited company even before listing on the stock exchange.

The company may raise its authorised share capital next. The authorised share capital is the maximum amount of capital that a company can issue to stakeholders.

The development comes only a few days after Delhivery issued bonus shares to all of its 90 shareholders. As per the regulatory filings, the company decided to allot 16.8 million bonus shares to equity shareholders in the ratio of 9:1.

According to an Economic Times report citing sources, Delhivery plans to take $1 billion from its IPO in the financial year 2022 that ends in March.

In a run-up to the IPO, the Gurugram-based startup has already raised half a billion from three prominent investors — Fidelity, FedEx and Lee Fixel’s Addition. It has raised over $1.3 billion to date from marquee investors like SoftBank, Tiger Global, Times Internet, The Carlyle Group and Steadview.

It turned into a unicorn, a startup valued over a billion, in 2019. Its current valuation is reported to be around $3 billion.

Delhivery was founded by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati and Suraj Saharan in 2011. Two of the company’s co-founders — Manglani and Tandon — have already stepped out of the company earlier this year, reportedly, to meet regulatory requirements before starting their IPO process.

The company claims to have fulfilled more than 850 million transactions to date and works with over 10,000 direct customers.

Besides Delhivery, digital payments companies Paytm and MobiKwik, hotel and hospitality chain OYO, insurtech giant PolicyBazaar and payments gateway Pine Labs are looking to hit the public market.

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