The ₹5,235-crore IPO of Delhivery opens today, May 11, for subscription and closes on May 13. The issue comes at a price band of ₹462-487 a share. Investors can bid for a minimum of 30 equity shares and in multiples thereof.
While the logistics major will raise ₹4,000 crore through the fresh issue, the balance (₹1,235 crore) will be on offer for sale from existing shareholders such as Carlyle Group and SoftBank.
64 anchor investors
On Tuesday, Delhivery raised ₹2,347 crore from 64 anchor investors who included marquee domestic and overseas investors such as Tiger Global, Bay Capital, Steadview, Fidelity, Baillie Gifford, Schroders, Aberdeen Standard Life, SBI Mutual Fund, HDFC MF, ICICI MF, etc.
Selling shareholders
While CA Swift Investments, an entity of Carlyle Group, will offload shares to the tune of ₹454 crore, SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, to sell ₹365 crore; Deli CMF Pte Ltd, a wholly-owned subsidiary of China Momentum Fund, LP will offload shares worth ₹200 crore and Times Internet ₹165 crore. The Co-Founders of Delhivery Kapil Bharati, Mohit Tandon and Suraj Saharan will also sell shares worth ₹5 crore, ₹40 crore and ₹6 crore, respectively, through the OFS.
The company has set aside 10 per cent for retail individual investors (RII). Around 75 per cent of the total offer has been allocated to qualified institutional buyers (QIB). For non-institutional investors (NII), the company has reserved 15 per cent. Employees will get a discount of ₹25 per equity share.
Utility of IPO funds
The company plans to use the proceeds of the issue to fund its organic and inorganic growth initiatives via acquisitions and other strategies. The company has cut its total issue size to ₹5,235 crore from ₹7,460 crore planned earlier.
Book running lead managers to Delhivery IPO are Kotak Mahindra Capital Company, Morgan Stanley India Company Private Limited, BofA Securities India Limited, and Citigroup Global Markets India Private Limited. The registrar to the issue is Link Intime India Private Limited.