Indian logistics giant Delhivery has listed for an initial public offering (IPO) with market regulator Securities and Exchange Board of India (SEBI) to raise up to ₹7,400 crores ($997.33 million), entering a great list of startups that have touched the capital market this year.
Delhivery IPO will consist of primary issuance of Rs 5,000 crores which the end-to-end supply chain unicorn will raise through public issue. The offer for sale by the current investors will be to the number of Rs 2,460 crores. Key shareholders trading in the IPO are China Momentum Fund (Deli CMF) Rs 400 crore, Carlyle – Rs 920 crore, SoftBank – Rs 750 crore and Times Internet – Rs 330 crore.
Sources advise that the hopeful valuation expectation by the corporation in the IPO issue is around $5.5 billion, subject to a demand-supply situation closer to the listing. Use of proceeds from the IPO includes Rs 2,500 crore for funding organic growth initiatives, Rs 1,250 crore funding inorganic growth through acquisitions and other strategic initiatives and general corporate proposes. The company is raising a total of Rs 5,000 crore via IPO.
Delhivery, a new-gen domestic logistics giant and supply chain firm financed by the likes of Softbank, Tiger Global Management and Carlyle, earlier signed an agreement to acquire 100 percent shares in opposing express logistics player Spoton Logistics.
According to RedSeer Report, Delhivery was the largest and fastest-growing fully-integrated logistics services player in India by revenue as of Fiscal 2021. The company earlier allotted bonus shares to shareholders through a resolution passed in the Extraordinary General Meeting (EGM) held on September 29.
Delhivery operated 20 entirely and semi-automated sortation stations and 86 gateways over India (ejecting Spoton) as of June 30, 2021. It had a Rated Automated Sort Capacity of 3.17 million shipments per day as of June 30, 2021, which it further enhanced to more than 3.98 million shipments per day as of September 30, 2021. The organisation has automated material managing systems at its gateways in Tauru (Haryana), Bhiwandi (Maharashtra) and Bengaluru (Karnataka).
In an earlier interview, Delhivery co-founder and chief executive Sahil Barua indicated that the business had intentions to list within the next six to eight months and raise a primary issue in the span of $400-$500 million.