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Delhivery bags ₹2,347-cr from 64 anchor investors ahead of IPO

Delhivery, a logistics and supply chain startup, has collected Rs 2,347 crore from 64 anchor investors ahead of its IPO, which will open for subscription on Wednesday, May 11. 

According to investment bankers, anchor investors received over 48 million shares at Rs 487 each, which was the upper end of the price band for the IPO. 

According to banking sources, Tiger Global, Bay Capital, Steadview, Fidelity, Baillie Gifford, Schroders, Amansa, Aberdeen Standard Life, GIC, Government Pension Fund Global, and Invesco HK were among the international investors who participated in the anchor share allotment.

Seven domestic mutual funds, including HDFC, SBI, ICICI Prudential, Franklin Templeton, Invesco, Nippon, and Mirae, received approximately 14.59 million shares. 

The subscription period for Delhivery’s Rs 5,235 crore public issue will end on Friday, May 13. The offer’s price range has been set at Rs 462 to Rs 487 per share. Bids for a minimum of 30 shares and multiples of 30 shares after that are accepted. 

The offer includes a fresh issue of shares worth up to Rs 4,000 crore and an offer for sale by some existing business shareholders worth up to Rs 1,235 crore. 

Some domestic brokerages have advised investors to subscribe to the Delhivery IPO.

“We believe Delhivery’s asset light business model and its cutting‐edge engineering and automation capabilities and its new age technologies will help the company leverage its operating efficiencies and improve profitability in the coming years,” Yes Securities said in a note.

Delhivery would invest Rs 2,000 crore in organic growth efforts from the proceeds of the offering, including scaling up existing business lines, establishing new adjacent business lines, extending network infrastructure, and upgrading and refining our proprietary logistics operating system. It will also spend Rs 1,000 crore on acquisitions and other strategic initiatives to fund inorganic growth possibilities.

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