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Delhivery Valuation Up Nearly 5% To $4.8 Bn At The End Of Second Trading Day

Shares of Gurugram-based logistics unicorn Delhivery declined 4.73% to INR 511 on the NSE on Wednesday, a day after the startup made its stock market debut. Its market valuation stood 4.93% higher at INR 37,022 Cr ($4.77 Bn) at the end of the day as against its pre-IPO valuation of INR 35,283 Cr ($4.55 Bn) at the offer price.

The shares of the logistics startup listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Tuesday. The shares listed at a premium of 1.7% over the issue price at INR 495.2 on the NSE. The initial public offering (IPO) was subscribed 1.63 times.

The shares closed over 10% higher than the issue price at INR 536.35 on the first day of trading. The startup’s valuation stood at INR 38,833 Cr ($5 Bn) at the end of the first day, 10% higher than the pre-IPO valuation. 

The stock opened higher at INR 543.80 on Wednesday but gave up the gains to close nearly 5% lower.

Delhivery planned to raise INR 5,235 Cr via the public issue, which included an INR 4,000 Cr worth of fresh issue of shares and an INR 1,235 Cr offer for sale (OFS).

Before the IPO opened, the logistics company raised INR 2,347 Cr from 64 anchor investors, including marquee names such as Tiger Global, Bay Capital, Steadview and Fidelity, among others.

The company’s IPO opened on May 11 and closed on May 13. By the end of the offer window, the IPO was subscribed 1.63 times, pushed primarily by institutional investors.

Founded in 2011 by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati and Suraj Saharan, Delhivery provides a full suite of logistics services such as forward and reverse logistics, truckloads, warehousing and technology services.

Manglani and Tandon, two of the company’s cofounders, quit the company and stepped aside from day-to-day operations in March 2021.

According to its RHP, Delhivery’s total income stood at INR 4,911.4 Cr in the nine months ending December 31, 2021. During the same period, Delhivery clocked a loss of INR 891.13 Cr. The company’s expenditure increased by 38% to hit INR 5,810.15 Cr.

Delhivery is the first major new-age tech startup to go for an IPO in 2022 amid a slowdown in equities globally. Currently, more than a dozen startups are in line for IPOs but are waiting for a decline in market volatility and a change in investor sentiment.

Recently, FirstCry became the first major startup to announce the postponement of its IPO plans. The kids’ marketplace was lining up for a $1 Bn IPO but has postponed the plans citing increased market volatility.

Besides FirstCry, consumertech startup boAt is targeting a listing during the first quarter of 2023, even though it has received SEBI’s nod for its INR 2,000 Cr IPO.

Along with these two, the likes of PharmEasy, Mobikwik and OYO are some of the few new-age tech startups which have received the market regulator’s nod for an IPO but are waiting for better market conditions.

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