Delhivery raises ₹2,347 crore from anchor investors ahead of IPO

The size of the initial public offer has been cut to ₹5,235 crore from ₹7,460 crore planned earlier

Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, and more. | Photo Credit: W.S. Balaji

Supply chain company Delhivery on May 10 raised ₹2,347 crore from anchor investors, ahead of its initial share sale, which opened for public subscription on May 11. The company has decided to allocate a total of 4,81,87,860 equity shares to anchor investors at ₹487 apiece, which is also the upper end of the price band, aggregating the transaction size to ₹2,346.74 crore, according to a circular uploaded on the BSE website.

AIA Singapore, Amansa Holdings, Aberdeen New India Investment Trust Plc, Goldman Sachs, The Master Trust Bank of Japan, Government of Singapore, Monetary Authority of Singapore, Fidelity, Tiger Global Investments Fund, Steadview Capital Master Fund, Morgan Stanley Asia (Singapore) Pte, Societe Generale and Segantii India Mauritius are among the anchor investors.

In addition, SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Mirae MF, ICICI Prudential MF, Invesco MF, and Nippon India too participated in the anchor round.

The size of the initial public offer (IPO) has been cut to ₹5,235 crore from ₹7,460 crore planned earlier.

The public issue now comprises fresh issuance of equity shares worth ₹4,000 crore and an offer for sale (OFS) component of ₹1,235 crore by existing shareholders.

Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery's co-founders will divest their shareholding in the logistics company.

CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of ₹454 crore, SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth ₹365 crore, Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P. will sell shares worth ₹200 crore and Times Internet will sell shares worth ₹165 crore.

In addition, Delhivery's co-founders - Kapil Bharati, Mohit Tandon and Suraj Saharan - will sell shares worth ₹5 crore, ₹40 crore, and ₹6 crore respectively.

At present, SoftBank owns 22.78% stake, Carlyle has 7.42% stake, Bharti owns 1.11%, Tondon has 1.88% and Saharan holds 1.79% stake in the company.

The public issue, with a price band of ₹462-487 a share, opened for subscription on May 11 and will conclude on May 13.

Proceeds of the fresh issue will be used towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes. A total of 75% of the issue has been reserved for qualified institutional investors, 15% for non-institutional investors, and the remaining 10% for retail investors.

In addition, the company has set aside shares worth ₹20 crore for eligible employees, who will get a discount of ₹25 per equity stock during the bidding process.

Investors can bid for a minimum of 30 equity shares and in multiples thereof.

From logistics to value-added services

Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, warehousing, supply chain solutions, cross-border express and freight services, and supply chain software, along with value-added services such as e-commerce return services, payment collection, and processing, installation and assembly services.

The e-commerce logistics company operates a pan-India network and provides services in 17,045 postal index number (PIN) codes. The company's express parcel delivery network, which serviced 17,488 PIN codes in the nine months ended December 2021, covered 90.61% of the 19,300 PIN codes in India. The company provides supply chain solutions to a diverse base of 23,113 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers, and enterprises and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive, and manufacturing. The Gurugram-based company said about five customers contributed to more than 40% of its revenues in FY21.

Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India are the book running lead managers to the issue. The equity shares of the supply chain company will be listed on the stock exchanges - BSE and NSE - on May 24.

In August, Delhivery acquired Spoton to further scale their partial truckload (PTL) freight services business.