Delhivery IPO to open on May 11; price band fixed at ₹462-487 apiece

Delhivery Ltd, a logistics and supply chain startup, is all set to launch its initial public offering (IPO) after the mega LIC public issue. The price band for the public issue has been fixed at ₹462-487 a share, and the company has been valued at ₹35,283 crore at the top end of the band.

The Gurugram-based delivery company aims to raise ₹5,235 crore, which is a reduction from ₹7,460 planned earlier. The three-day initial public issue will open on May 11 till May 13, while bidding for anchor investors will open on May 10.

About 75% of the issue has been fixed for qualified institutional investors, 15% for non-institutional investors and 10% for retail investors. Investors can bid for a minimum of 30 equity shares and in multiples thereof.

Delhivery had achieved the unicorn status in 2019 after it raised $413 million in a Series F funding, led by SoftBank Vision Fund.

The IPO comprises a fresh issue and an offer for sale worth ₹4,000 crore and ₹1,235 crore, respectively. Those selling shares in OFS are CA Swift Investments ₹454 crore; Deli CMF Pte Ltd ₹200 crore; SVF Doorbell (Cayman) Ltd ₹365 crore; Times Internet Ltd ₹165 crore; Kapil Bharti (co-founder) ₹5 crore; Mohit Tandon (co-founder) ₹40 crore; and Suraj Saharan (co-founder) ₹6 crore.

The company claims to be the largest and fastest-growing integrated logistics services player in India by revenue as of fiscal 2021. It wants to use the net proceeds towards funding organic growth initiatives; funding inorganic growth through acquisitions and other strategic initiatives; and general corporate purposes.

Delhivery will use ₹2,000 crore to fund organic growth initiatives like building scale in existing business lines and developing new adjacent business lines, expanding its network infrastructure and upgrading and improving its proprietary. It'll also use funds to fuel inorganic growth through acquisitions and other strategic initiatives.

In fiscal 2021, Delhivery’s revenue from contracts with customers was ₹3,646 crore. It operates a pan-India network and provides its services in 17,488 PIN codes as of December 31, 2021. In fiscal 2021, the company fulfilled over 28.9 crore express parcel orders, carried 373,854 tonnes of PTL (partial truckload) freight, processed 4.7 crore orders through its fulfilment centres and completed over 46,878 truckload movements.

It has a base of 23,113 active customers, which span across e-commerce, consumer durables, electronics, lifestyle, FMCG, industrial goods, auto, healthcare and retail. The company has been valued at $3 billion after its latest funding worth $275 million, which was led by Fidelity Management and Research Company.

Delhivery was incorporated as “SSN Logistics Private Limited”, a private limited company, on June 22, 2011. The name was changed to “Delhivery Private Limited” on December 8, 2015, and then to “Delhivery Limited” on October 12, 2021. Kotak Mahindra Capital, Bofa Securities India, Citigroup Global Markets and Morgan Stanley India are the book running lead managers for the public issue.