Logistics firm Delhivery IPO entails to raise Rs. 5,235-crore through a combination of fresh issue and OFS. The Delhivery IPO opens for bidding on 11th May and closes on 13th May, 2022. The price band is Rs. 462 – 487 per share. Delhivery is the largest and fastest growing fully-integrated logistics services player in India by revenue as of Fiscal 2021.
| Issue Opens | 11th May, 2022 |
| Issue Closes | 13th May, 2022 |
| Issue Details | Fresh Issue -₹ 4,000 Cr + OFS up to ₹ 1,235 Crore |
| Face Value | ₹ 1/- |
| Issue Size (₹ Cr) | ₹ 5,235 Cr |
| Issue Size (shares) | 113,336,452 – 107,517,088 |
| Bid ot | 30 shares |
| Price Band | ₹ 462 – 487 |
| Issue Structure : | |
| QIB | 75% of offer; 8.031 – 8.466cr shares |
| NIB | 15% of net offer; 1.606 – 1.693cr shares |
| Retail | 15% of net offer; 1.071 – 1.129cr shares |
| Appl. for 1x Retail | ~ 3.7 Lacs |
About Delhivery
- Delhivery Limited was incorporated on June, 2011.
- It is the largest and fastest growing fully-integrated logistics services player in India by revenue as of Fiscal 2021.
- Delhivery provided supply chain solutions to a diverse base of 23,113 Active Customers. This included as e-commerce marketplaces, direct-to consumer e-tailers and enterprises and SMEs across several sectors.
- Its in-house logistics technology stack is built to meet the dynamic needs of modern supply chains. They have over 80 applications through which they provide various services.
- Delhivery collect, structure, store and process vast amounts of transaction and environmental data to guide real-time operational decision making.
- Delhivery operated 21 fully and semi-automated sortation centres and 82 gateways across India (excluding Spoton) as of December 31, 2021.
- They had a Rated Automated Sort Capacity of 3.70 million shipments per day as of December 31, 2021.
- Delhivery operates a pan-India network and provide their services in 17,488 postal index number (“PIN”) codes, as of December 31, 2021.
- Company’s express parcel delivery network, serviced 17,488 PIN codes thus covering 90.61% of the 19,300 PIN codes in India.
Anchor Investors
Anchor book portion saw response from 64 investors in total, picking up more than 4.8 crore equity shares of the company. The Anchor book saw allotment to marquee names such as Goldman Sachs, Morgan Stanley, Government of Singapore, Fidelity Investment Trust, Tiger Global, Invesco etc. Also more than 1.45 crore equity shares have been allocated to 7 domestic mutual funds in the anchor book portion through 17 schemes. These domestic funds included SBI, HDFC, ICICI prudential, Mirae Asset, Franklin India, Invesco, and Nippon Life India.
Delhivery IPO: Financials
| Item / ( Rs. in Crores) | 2021(09) | 2020(09) | FY21 | FY20 | FY19 |
| Revenue from Contracts | 4,810.53 | 2,643.87 | 3,646.53 | 2,780.58 | 1,653.90 |
| Revenue Growth (%) | 81.95% | – | 31.14% | 68.12% | – |
| EBITDA | -231.79 | -89 | -100.38 | -172.05 | -137.07 |
| Adusted . EBITDA | -34.8 | -213.07 | -253.28 | -253.19 | -187.64 |
| Net Loss for the period | -891.14 | -297.49 | -415.74 | -268.93 | -1,783.30 |
| NAV (₹ ) | 93.19 | 56.44 | 54.79 | 61.51 | 65.94 |
| Post IPO Equity in cr | 72.45 | ||||
| FV | 1 | ||||
| IPO Price | 487 | ||||
| EPS ( FY21) | -5.20 | ||||
| EPS (9m FY22) | -12.3 | ||||
| Market Cap | 35283 | ||||
| Market Cap / Sales | 5.50 |
Delhivery IPO: Assessment
- 75% of IPO is reserved for QIBs as company is loss making.
- Delhivery is a professionally managed company, and does not have any identifiable promoter.
- Delhivery is the largest and fastest-growing 3PL express parcel delivery player, having a unified infrastructure network, and proprietary technology stack and capabilities.
- Softbank which is the single largest shareholder in the company will reduce its holding from 22% to 19%.
- Delhivery has expanded internationally by establishing a reciprocal partnership with Aramex and a strategic alliance with FedEx, both global express leaders, for customs clearance, pick-up, and delivery services.
- in July 2021, the company have executed an agreement to facilitate a strategic alliance with FedEx, targeted principally at expanding its coverage in the North American, European, Australian, and Asian markets.
- Delhivery IPO is seeking valuation of Rs 35000 Crores plus while its losses in the first 9 months of current financial year are Rs 890 Crores. Though the company was grown quite fast, despite a decade of existence and backing by marque investors it has nt been able to turn corner.
- Delhivery IPO is coming at 6.1 times of its EV/sales. the corresponding figure for Blue Dart Express is 3.6x, TCI Express is 6.1x, Mahindra Logistics is .8x, VRL Logistics is 2.1x and TCI is 1.7x.
- Unser current market conditions and factors stated above, I am not likely to apply to Delhivery IPO.