Delhivery Gets Approval from SEBI for Proposed IPO

Digital supply chain and logistics company, Delhivery, has got the SEBI go ahead for its proposed Rs.7,460 crore IPO. The onus is now on the company to announce the dates since the SEBI has already given its observations on the IPO, which is tantamount to an approval. The company is expected to announced the IPO dates by next week.

The Delhivery IPO comprises of a fresh issue of Rs.5,000 crore and an offer for sale of Rs.2,460 crore. If this issues go to subscription soon, it would be the first big digital IPO of this calendar year. Last year, we had seen 4 mega digital issues comprising of Zomato, Nykaa, Policybazaar and Nykaa which had jointly raised close to $5.5 billion between them. Delhivery alone will be a $1 billion IPO.

Delhivery would be looking to time its IPO early in the year so that the rush can be avoided. There is the mega OYO Rooms IPO that is slated to hit the market shortly with a $9 billion expected valuation. The biggest even in the first quarter, if the government is successful could be the LIC IPO, which would raise anywhere around Rs.90,000 crore as per early indications. Delhivery would be surely looking to avoid that IPO rush.

Two of the early PE investors in Delhivery, Carlyle Fund and Softbank of Japan, will be taking partial exit from Delhivery through the OFS. In addition, some of the core promoter group will also look at a partial monetization of their stake in the company. While the Carlyle Group is expected to offload shares worth Rs.920 crore, Softbank is expected to offload shares to the tune of Rs.750 crore. Both will sell through their associate companies.

Delhivery provides supply chain solution to over 21,340 active customers spread across India. It largely services niche players like ecommerce marketplaces, D2C e-tailers, SMEs and the logistics needs of FMCG and consumer durables industry. Delhivery services a total of 17,045 PIN codes across India. PIN, here, refers to the postal index number which is the coding system followed by the postal department to identify each micro level area.

The company plans to use the fresh funds to bankroll its organic and inorganic growth plans. The company is planning a number of niche purchases where the broad spectrum of coverage fits into the long term plans of Delhivery. The issue of Delhivery will be lead managed by Kotak Mahindra Capital, BOFA Securities, Morgan Stanley India and Citigroup.

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