Delhivery IPO: Supply chain company sets price band—10 things to know before public offer hits market

Supply chain company Delhivery on Thursday fixed a price band for its Rs 5,235-crore initial public offering (IPO). Delhivery provides a full-range of Logistics services, including delivery of Express Parcel and heavy goods, PTL freight, TL freight, Warehousing, supply chain solutions, Cross-border Express, freight services, and supply chain software. In May, Delhivery announced that it has raised USD 275 million (about Rs 2,000 crore) in a primary funding round, led by Fidelity Management and Research Company. With this capital raise, Delhivery's valuation was expected to rise to over USD 3 billion. PTI SP 

As the logistics company's IPO is all set to open in the second week of May, here are top 10 things an investor need to know beforehand.   

Delhivery IPO Price Band 

The logistics and supply chain company on Thursday fixed a price band of Rs 462-487 a share for its upcoming IPO 

Delhivery IPO open and closing date 

The three-day IPO will open for subscription on May 11 and conclude on May 13. The bidding for anchor investors will open on May 10, according to the company. 

Delhivery IPO issue size 

The size of the IPO has been cut to Rs 5,235 crore from Rs 7,460 crore planner earlier. The public issue comprises fresh issuance of equity shares worth Rs 4,000 crore and an offer for sale (OFS) component of Rs 1,235 crore by existing shareholders. 

Delhivery IPO lot size 

An investor can bid for a minimum of 30 equity shares and in multiples thereof. 
 
Delhivery OFS details 

Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery's co-founders will divest their shareholding in the logistics company. CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of Rs 454 crore while SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth Rs 365 crore. Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P. Will sell shares worth Rs 200 crore and Times Internet will offload shares worth Rs 165 crore. In addition, Delhivery's co-founders -- Kapil Bharati, Mohit Tandon and Suraj Saharan-- will sell shares worth Rs 5 crore, Rs 40 crore and Rs 6 crore, respectively. 

Delhivery IPO allocation 

As per the company, as much as 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for the non-institutional investors and the remaining 10 per cent for retail investors. 

Delhivery IPO book running lead managers 

Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India are the book running lead managers to the issue. 

Delhivery IPO company details 

The e-commerce logistics company operates a pan-India network and provides services in 17,045 postal index number (PIN) codes. It provides supply chain solutions to a diverse base of 21,342 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing. 

Delhivery IPO business model 

As per brokerage firm Motolal Oswal, Delhivery has an asset light business model, which helps it to scale up volumes rapidly at lower fixed costs and with greater flexibility. 

Delhivery IPO Objective 

The company plans to use proceeds of the fresh issue towards funding organic growth initiatives, inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes.