Delhivery Shares Up 3% After 3.2% Stake Block Deal; CPPIB Likely Exits

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 10th July 2024 - 12:45 pm

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On July 10, a block deal saw the sale of a 3.17% stake, or 2.34 crore shares, in logistics company Delhivery, with the Canada Pension Plan Investment Board (CPPIB) likely being the seller.

Following the block deal, Delhivery share price rose by 09:17 am, the shares were trading at ₹394.15 on the NSE. While the specific buyers and sellers were not immediately identified, CNBC-TV18 reported that CPPIB aimed to sell its entire stake to earn approximately ₹886 crore.

Delhivery's shares reached a 52-week high of ₹488 on February 5, 2024, and a 52-week low of ₹354.50 on December 15, 2023. The company's market cap increased to ₹29,092 crore, with the stock opening flat at ₹395.60.

As of the end of the March quarter of FY24, CPPIB held a 5.96% stake in Delhivery. Since then, CPPIB has sold a 2.77% stake, amounting to around two crore shares, for ₹900 crore on April 25. In that transaction, buyers included Fidelity Funds, HSBC, and the Smallcap World Fund, with the latter acquiring the largest portion at 1.87%.

Technically, Delhivery's relative strength index (RSI) stands at 42, indicating it is neither overbought nor oversold. The stock has a beta of 0.7, suggesting very low volatility over a year. Currently, Delhivery's shares are trading below their 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages.

Delhivery provides a comprehensive range of logistics services, including express parcel and heavy goods delivery, PTL freight, TL freight, warehousing, supply chain solutions, cross-border express and freight services, and supply chain software. It is recognized as the largest and fastest-growing fully integrated logistics services provider in India by revenue as of FY21.

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