May 12, 2022
By: bhakti.makwana@timesinternet.in
Credit: BCCL
Logistics and supply chain company Delhivery launched its ₹5,235 crore IPO on May 11 which will close on May 13. The price band is set at ₹462-487 per share.
Credit: BCCL
Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, PTL freight, TL freight, warehousing, supply chain solutions, and cross-border services among others.
Credit: BCCL
The company proposes to use the IPO proceeds to fund acquisitions and expansion plans, with an eye on future growth.
Credit: BCCL
Delhivery is a loss making firm with FY21 losses at ₹415 crore. On the bright side, the losses have come down by 76 percent from ₹1,783 crore in FY19.
Credit: BCCL
The company's active customers grew four times to 16,741 in the last three financial years from 4,867 in FY19 along with good growth in pincode reach and delivery points.
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The company has reduced its issue size to ₹5,235 crore from ₹7,460 crore earlier, due to volatile market conditions, and competition with the LIC IPO.
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Despite an improvement in the revenue, Delhivery is still a loss making firm, disappointing analysts who also believe it’s aggressively priced.
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Analysts at BP Equities peg Delhivery with new age firms like Zomato, Paytm which disappointed investors and wiped out wealth on listing.
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The grey market believes that the stock might list at a discount – below its lower price band of ₹462, due to weak market conditions.
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On the first day of subscription on May 11, 22 percent of the IPO was subscribed. The IPO will close tomorrow on May 13.
Credit: BCCL