- Date : 19/01/2022
- Read: 3 mins
The IPO consists of fresh issuance of equity shares worth ₹5,000 crore and an Offer For Sale (OFS) component of ₹2,460 crore by existing shareholders.
Indian logistics and e-commerce supply chain company Delhivery has got a nod from financial markets regulator SEBI to raise Rs 7,460 crore via an Initial Public Offering (IPO). The Delhivery IPO date is yet to be announced. Delhivery had filed the preliminary papers for the IPO with SEBI back in November. It received its observation letter on January 13, which indicates a go-ahead for the IPO.
Also Read: Stellar IPOs Of 2021: A Round-Up
Delhivery IPO: Who are the stakeholders?
As per the Draft Red Herring Prospectus (DRHP), the IPO consists of fresh issuance of equity shares worth Rs 5,000 crore and an Offer For Sale (OFS) component of Rs 2,460 crore by existing shareholders. Delhivery’s co-founders will liquidate a percentage of their holding in view of the IPO. Co-founders Mohit Tandon, Kapil Bharati and Suraj Saharan will sell shares to the tune of Rs 40 crore, Rs 14 crore and Rs 6 crore, respectively. Currently, Tandon has 1.88 per cent, Bharati owns 1.11 per cent, and Saharan holds a 1.79 per cent stake in the company.
Additionally, existing shareholders CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of Rs 920 crore; SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth Rs 750 crores; Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P., will sell shares worth Rs 400 crore; and Times Internet will sell shares worth Rs 330 crore.
Also Read: IPOs In India 2021: How To Invest In An IPO Via Zerodha, Upstox, And 5Paisa
What will the funds raised via Delhivery IPO be used for?
Delhivery has ambitious growth plans that it wants to augment with the fresh influx of funds. The issue will be utilised towards funding organic and inorganic growth initiatives. Along with key strategic initiatives, the company has acquisitions plans in the pipeline.
The book running lead managers to the issue include Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India.
Delhivery, a company that was founded in 2011, raised Rs 1995 crore in May 2020 in a primary funding round that was led by Fidelity Management and Research Company.
Also Read: What To Keep In Mind When Investing In An IPO?
With a pan-India network, Delhivery services more than 17,000 Postal Index Number (PIN) codes. It offers supply chain solutions to a diverse base of 21,342 active customers, including e-commerce companies, direct-to-consumer e-tailers and enterprises, as well as small and medium enterprises across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing.
Indian logistics and e-commerce supply chain company Delhivery has got a nod from financial markets regulator SEBI to raise Rs 7,460 crore via an Initial Public Offering (IPO). The Delhivery IPO date is yet to be announced. Delhivery had filed the preliminary papers for the IPO with SEBI back in November. It received its observation letter on January 13, which indicates a go-ahead for the IPO.
Also Read: Stellar IPOs Of 2021: A Round-Up
Delhivery IPO: Who are the stakeholders?
As per the Draft Red Herring Prospectus (DRHP), the IPO consists of fresh issuance of equity shares worth Rs 5,000 crore and an Offer For Sale (OFS) component of Rs 2,460 crore by existing shareholders. Delhivery’s co-founders will liquidate a percentage of their holding in view of the IPO. Co-founders Mohit Tandon, Kapil Bharati and Suraj Saharan will sell shares to the tune of Rs 40 crore, Rs 14 crore and Rs 6 crore, respectively. Currently, Tandon has 1.88 per cent, Bharati owns 1.11 per cent, and Saharan holds a 1.79 per cent stake in the company.
Additionally, existing shareholders CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of Rs 920 crore; SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth Rs 750 crores; Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P., will sell shares worth Rs 400 crore; and Times Internet will sell shares worth Rs 330 crore.
Also Read: IPOs In India 2021: How To Invest In An IPO Via Zerodha, Upstox, And 5Paisa
What will the funds raised via Delhivery IPO be used for?
Delhivery has ambitious growth plans that it wants to augment with the fresh influx of funds. The issue will be utilised towards funding organic and inorganic growth initiatives. Along with key strategic initiatives, the company has acquisitions plans in the pipeline.
The book running lead managers to the issue include Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India.
Delhivery, a company that was founded in 2011, raised Rs 1995 crore in May 2020 in a primary funding round that was led by Fidelity Management and Research Company.
Also Read: What To Keep In Mind When Investing In An IPO?
With a pan-India network, Delhivery services more than 17,000 Postal Index Number (PIN) codes. It offers supply chain solutions to a diverse base of 21,342 active customers, including e-commerce companies, direct-to-consumer e-tailers and enterprises, as well as small and medium enterprises across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing.
