Can you give me more details of the Delhivery IPO and when the IPO is scheduled to hit the IPO market in India?
Answer
Answer
Delhivery, which is one of India’s largest digital supply chain and logistics companies, has got the go-ahead from SEBI for its proposed Rs.7,460 crore IPO. SEBI has already given its observations on the IPO, which is equivalent to approval. The company is expected to announce the IPO dates by next week and the IPO is likely to be completed in January itself, although the actual dates and other pricing details are awaited.
The Rs.7,460 crore IPO will comprise a fresh issue of Rs.5,000 crore and an offer for sale of Rs.2,460 crore. It is likely to be the first big-budget digital IPO of the new year. Last year, 4 mega digital issues including Zomato, Nykaa, Policybazaar, and PB Fintech had jointly raised $5.5 billion. Delhivery alone will be a $1 billion IPO. Then there are the likes of PharmEasy and Oyo Rooms in the queue, apart from Swiggy and other biggies.
Delhivery would want to complete the IPO quickly to avoid the rush of other digital IPOs and more importantly the rush of the LIC IPO, which is likely to absorb a lot of free liquidity in the market. LIC IPO is expected to raise anywhere around Rs.90,000 crore as per early indications. Delhivery would look to avoid that IPO rush. So the earlier the IPO happens is better for Delhivery.
PE investors, Carlyle Fund, and Softbank will be taking a partial exit from Delhivery via the OFS. Some of the core promoter groups will also look at a partial monetization of their stake in Delhivery. Carlyle Group will offload shares worth Rs.920 crore and Softbank will offload shares worth Rs.750 crore. Delhivery will use the fresh funds component to bankroll its organic and inorganic growth plans. Delhivery has been involved in niche M&A till now.
Delhivery currently offers supply chain solutions to over 21,340 active customers spread across 17,045 different PIN codes in India. The customer profile is typically niche players like e-commerce marketplaces, D2C e-tailers, SMEs. Delhivery also caters to the B2B logistics needs of the FMCG and the consumer durables industry. The issue of Delhivery will be lead managed by Kotak Mahindra Capital, BOFA Securities, Morgan Stanley India, and Citigroup.