Delhivery IPO oversubscribed despite challenging current market conditions
The Rs 5,235 crore IPO of Delhivery has garnered a tremendous response in terms of subscription on its last day.
Indian logistics services provider Delhivery’s IPO was oversubscribed on Friday, despite challenging current market conditions. The data provided by the Bombay Stock Exhange (BSE) indicated that Delhivery’s issue was subscribed 1.12 times.
Moreover, the qualified institutional buyers (QIBs) portion was subscribed nearly two times. Other categories are not fully subscribed.
This is the second biggest IPO in India after Life Insurance Corporation of India (LIC). Moreover, the company has allotted Rs 2,346 crore worth of shares to 64 anchor investors at Rs 487 per share, the upper end of its IPO price band. Amansa, Goldman Sachs, Aberdeen, Tiger Global, Schroder and Baillie Gifford were among anchor investors who got an allotment.
“At the upper band of its IPO price of Rs 487, Delhivery is valued at 2.4 times FY24 EV/Sales. This indicates an attractive valuation when compared with its peers”
broking firm Ventura said in a note.
Given the company’s strong fundamentals and its performance despite challenging the current market conditions, we can say that this IPO will be a profitable play in the long run. Delhivery will have a market cap of Rs 35,284 crore on a post-diluted basis. Through this IPO, the logistics services provider is looking to raise Rs 4,000 crore of fresh capital out of 5,235 crores and the remaining Rs 1,235 crore will be an offer for sale (OFS) investors, which will include private equity firms Carlyle and Softbank.
