Logistics firm Delhivery and stainless steel pipes and tubes manufacturer Venus Pipes & Tubes made a decent debut on the domestic bourses on Tuesday, with shares listing at a premium over their issue price, in an otherwise volatile trade. Indian equity benchmarks swung between gains and losses in a choppy session, tracking weak cues from Asian peers, in absence of any major developments on the domestic or global front.
Delhivery shares listed at ₹493 apiece on the BSE, a premium of ₹6 or 1.2% over its issue price of ₹487. On the NSE, the stock opened at ₹495.2 apiece, up 1.7% against the issue price.
Meanwhile, Venus Pipes & Tubes debuted at ₹335 on the BSE, 2.76% higher from its issue price of ₹326 apiece. On the NSE, the stock kicked off trading at a premium of 3.52% at ₹337.50 apiece.
Post listing, Delhivery shares gained as much as 11.7% to hit an intraday high of ₹543.95 on the BSE, while Venus Pipes & Tubes surged 7.9% to touch a high of ₹351.75 during the session so far. In contrast, the BSE benchmark Sensex was trading 154 points lower at 54,134 levels at the time of reporting.
Delhivery raises ₹5,235 crore via IPO
The ₹5,235-crore initial public offering (IPO) of logistics services provider Delhivery was fully subscribed despite challenging market conditions. The issue, which opened for subscription between May 11-13, was subscribed 1.63 times as it received total bids for 10,17,04,080 shares as against 6,25,41,023 shares on offer. The Gurugram-based logistic company offered shares at a price band of ₹462-487 apiece.
The IPO received tepid response from retail and non-institutional investors, with quota reserved for them subscribing by 57% and 30%, respectively, as per data available on the NSE. The qualified institutional buyers portion was booked 2.66 times.
Ahead of the IPO, Delhivery has raised ₹2,347 crore from 64 anchor investors by allocating a total of 4,81,87,860 equity shares at ₹487 apiece, the upper end of the price band.
The company intends to use IPO proceeds for funding organic growth initiatives, and inorganic growth through acquisitions and other strategic initiatives, besides general corporate purposes. It 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.
Venus Pipes & Tubes garners ₹165 cr from public offer
The ₹165-crore IPO of Venus Pipes & Tubes had garnered a strong response from investors with the issue subscribing 16.31 times. The quota reserve for qualified institutional buyers was booked 12.02 times, followed by retail individual investors, which was subscribed 19 times. The portion for non-institutional investors received nearly 16 times bidding.
The Gujarat-based company, which manufactures and exports stainless steel pipes and tubes, offered 50,74,100 equity shares at a price range of ₹ 310-326 per share. The company aims to utilise the fund proceeds to boost its capacity expansion, technological upgradation, cost optimisation of operations, and backward integration for manufacturing of hollow pipes. A part of the fund will also be used to meet long-term working capital requirements and general corporate purposes.