Delhivery IPO subscribed 22% so far on day 2; retail portion booked 35%

The company is selling its shares in the range of Rs 462-487 apiece. The issue, which opened for subscription on Wednesday, May 11, can be subscribed till Friday, May 13.

According to the data from BSE, investors made bids for 1,38,54,960 equity shares or 22 per cent of the 6,25,41,023 shares on offer by 11.30 am on Thursday.

The portion for retail bidders was subscribed 35 per cent, while the institutional investors’ quota attracted 29 per cent bids. The employee quota saw only nine per cent bids. The portion of HNI investors failed to attract any bids so far.

The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15 per cent allocation. The remaining 10 per cent of shares will be given to the retail bidders.

The company looks to raise Rs 4,000 crore via issuance of fresh equity shares with a face value of Re 1 each, whereas its existing shareholders and promoters will offload shares worth Rs 1,235 crore via offer for sale (OFS) route.

Gurugram-based Delhivery is the largest fully integrated logistics services player in India by revenue. It has built a nationwide network in every state, servicing 17,045 PIN codes or 88.3 per cent of the 19,300 PIN codes in India.

The majority of the brokerages have recommended to skip the issue following its pricy valuations, mounting losses, rising fuel prices and the latest rout in the listed startup counters. However, a few have recommended to consider the issue for the longer term.

Reliance Securities said Delhivery has an integrated platform with a full range of supply chain services, vast amounts of data intelligence, and rapid growth at scale.

“The continued losses and aggressively priced IPO hardly leaves anything meaningful on the table for investors with a medium-term perspective,” it added without rating the issue.

Another brokerage firm Hem Securities has recommended to avoid the IPO for the short term.

Only long term investors should ‘subscribe’ to the issue, it said. “The company has been showing rapid growth and extensive scale with its proprietary logistics operating system and vast data intelligence capabilities.”

A day before its IPO, Delivery allocated a total of 4,81,87,860 equity shares to anchor investors at Rs 487 apiece aggregating the transaction size to Rs 2,346.74 crore, according to a circular uploaded on the BSE website.