Delhivery IPO: Should you invest? Yes!

Find out why the Delhivery IPO can deliver the goods for you.

7 Reasons why the Delhivery IPO makes for a good investment

India has over 19,000 PIN codes, and Delhivery covers more than 17,000 of them. With a workforce of 86,000+ employees and over a billion orders across India, Delhivery has taken the Indian logistics and supply chain industry by storm. 

Founded a little over a decade ago, Delhivery achieved unicorn status in 2019. Through each IPO India is seeing new faces in stock exchanges, and Delhivery is scheduled to be the next. The Delhivery IPO is the latest in a series of exciting milestones in the company’s journey. 

Also Read: All About IPOs In India

Check out these Delhivery IPO details to find out why it can be a good investment:

1. Affordable pricing and lot size:

The issue price band of its IPO is fixed in the range of Rs 462 to Rs 487. The Delhivery IPO date is 11-13 May 2022. Investors will have to bid for a minimum lot of 30 shares or multiple lots thereafter. So, the Delhivery IPO price band is very competitively priced.

2. Limited retail supply of shares:

Delhivery has earmarked shares worth Rs 20 crore to eligible employees at a discount of Rs 25 per share. 10% of the offered shares are available to retail investors, while 15% is meant for non-institutional investors. The low retail percentage is expected to whip up market demand. Also, 75% of the shares are available to Qualified Institutional Buyers (QIBs).

3. Good track record:

Delhivery’s first fund-raising was through Times Internet Ltd in 2012. By the end of its four series of fundings, start-up company Delhivery had a pan-India presence. It had even set up shop in Dubai. In 2019, it received funds from Japanese investor SoftBank. Beginning with Urban Touch, it has now hundreds of e-commerce clients. 

Also Read: Top 5 IPOs That Have Given The Highest Returns

4. Growth through IPO:

Delhivery has plans to finance organic and inorganic growth through its IPO offer. Acquisitions and strategic initiatives are planned as a part of the inorganic growth plans. Based on revenue growth, Delhivery is already the largest and fastest growing logistics company in India.

5. Strong market presence:

As we saw earlier, Delhivery has an impressive market presence. It has a large network of automated centres for sorting, fulfilment, returns processing, intermediate processing, and delivery. It has over 21,000 active customers across various industries. 

6. Competitive edge:

Delhivery’s rapid growth is fuelled by proprietary logistics technology systems, an integrated service portfolio, and an asset-light business model. Although the company disclosed net losses, its EBITDA for ESOPs has shown a steady improvement.

Also Read: Stellar IPOs Of 2021: A Round-Up

7. Reduced external holding:

The Delhivery IPO offer size will consist of fresh issues of Rs 4000 crore and an offloading of shares amounting to Rs 1235 crore by existing shareholders and promoters. The offloading will see a sell-off of shares of a value of Rs 200 crore by China Momentum Fund, Rs 454 crore by CA Swift Investments, and Rs 365 crore by SVF Doorbell. Times Internet will offload shares worth Rs 165 crore.

Conclusion

For the reasons cited above, the Delhivery IPO is one of the most awaited and promising offers to be listed on NSE and BSE this year. The IPO opens on 11 May 2022.

India has over 19,000 PIN codes, and Delhivery covers more than 17,000 of them. With a workforce of 86,000+ employees and over a billion orders across India, Delhivery has taken the Indian logistics and supply chain industry by storm. 

Founded a little over a decade ago, Delhivery achieved unicorn status in 2019. Through each IPO India is seeing new faces in stock exchanges, and Delhivery is scheduled to be the next. The Delhivery IPO is the latest in a series of exciting milestones in the company’s journey. 

Also Read: All About IPOs In India

Check out these Delhivery IPO details to find out why it can be a good investment:

1. Affordable pricing and lot size:

The issue price band of its IPO is fixed in the range of Rs 462 to Rs 487. The Delhivery IPO date is 11-13 May 2022. Investors will have to bid for a minimum lot of 30 shares or multiple lots thereafter. So, the Delhivery IPO price band is very competitively priced.

2. Limited retail supply of shares:

Delhivery has earmarked shares worth Rs 20 crore to eligible employees at a discount of Rs 25 per share. 10% of the offered shares are available to retail investors, while 15% is meant for non-institutional investors. The low retail percentage is expected to whip up market demand. Also, 75% of the shares are available to Qualified Institutional Buyers (QIBs).

3. Good track record:

Delhivery’s first fund-raising was through Times Internet Ltd in 2012. By the end of its four series of fundings, start-up company Delhivery had a pan-India presence. It had even set up shop in Dubai. In 2019, it received funds from Japanese investor SoftBank. Beginning with Urban Touch, it has now hundreds of e-commerce clients. 

Also Read: Top 5 IPOs That Have Given The Highest Returns

4. Growth through IPO:

Delhivery has plans to finance organic and inorganic growth through its IPO offer. Acquisitions and strategic initiatives are planned as a part of the inorganic growth plans. Based on revenue growth, Delhivery is already the largest and fastest growing logistics company in India.

5. Strong market presence:

As we saw earlier, Delhivery has an impressive market presence. It has a large network of automated centres for sorting, fulfilment, returns processing, intermediate processing, and delivery. It has over 21,000 active customers across various industries. 

6. Competitive edge:

Delhivery’s rapid growth is fuelled by proprietary logistics technology systems, an integrated service portfolio, and an asset-light business model. Although the company disclosed net losses, its EBITDA for ESOPs has shown a steady improvement.

Also Read: Stellar IPOs Of 2021: A Round-Up

7. Reduced external holding:

The Delhivery IPO offer size will consist of fresh issues of Rs 4000 crore and an offloading of shares amounting to Rs 1235 crore by existing shareholders and promoters. The offloading will see a sell-off of shares of a value of Rs 200 crore by China Momentum Fund, Rs 454 crore by CA Swift Investments, and Rs 365 crore by SVF Doorbell. Times Internet will offload shares worth Rs 165 crore.

Conclusion

For the reasons cited above, the Delhivery IPO is one of the most awaited and promising offers to be listed on NSE and BSE this year. The IPO opens on 11 May 2022.

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