Delhivery IPO opens on 11th May: Check IPO details, price band, financials & more

Delhivery IPO date
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Delhivery, a logistics and supply chain startup, is coming with its IPO next week. Delhivery IPO opens for subscription on 11th May. They have cut the total issue size to Rs 5,235 crore from Rs 7,460 crore planned earlier. 

Below are key details:

  • IPO Date: 11 May 2022- 13 May 2022
  • IPO Size: Rs 5,235 crore 
  • Delhivery IPO Price: Rs 462 to Rs 487
  • Minimum Investment amount: Rs 14,610 ( minimum 30 equity shares to be bid and the multiple for the same)
  • Distribution: The major investors get:
  • The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), whereas ,
  • Non-institutional buyers (NIIs) will get a 15 per cent allocation. 
  • The remaining 10 per cent shares will be available for retail bidders.

About Delhivery

  • Delhivery provides a full range of Logistics services, including delivery of an express parcel and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. 
  • Delhivery is the largest and fastest-growing fully integrated Logistics services player in India by revenue as of FY21. 
  • The company has proprietary technology systems that enable it to offer integrated Logistics services to a wide variety of customers. Its technology stack consists of over 80 applications for all supply chain processes.

Financials

  • The company reported revenue of Rs 1694.87 crore, Rs 2986.63 crore, and Rs 3838.29 crore in FY19, FY20, and FY21, respectively.
  • It is a loss-making company and has reported a loss of Rs 1783.30 crore, Rs 268.92 crore, and Rs 415.74 crore in the same period. 

USPs

  • Rapid growth, extensive scale, and improvement in unit economics.
  • It has Proprietary logistics operating system.
  • Delhivery has vast data intelligence capabilities.
  • Network design and engineering.

Growth potential

  • The company plans to expand investments in infrastructure and network.
  • It will continue to build scale in existing business lines.
  • Delhivery will focus on deepening the customer relationship.
  • It will enhance its technology (software and hardware) capabilities.

Risks

  • The company has a history of losses and negative cash flows from operating, investing, and financing activities and it may continue to experience losses and negative cash flows in the future.
  • They rely on a scaled, automated, and unified network infrastructure and may not be able to manage growth if they are not able to maintain or expand network infrastructure.
  • Disruptions to its logistics and transportation facilities could have a material impact on company business.
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