Shares of logistics firm Delhivery surged 7 percent in morning deals on Thursday amid reports that private equity (PE) company Carlyle is likely to offload its entire 2.5 percent stake in the firm via block deals today. However, the stock pared gains to turn flat soon on the back of the overall negative sentiment in the markets.
Delhivery shares surged as much as 7.3 percent to its day's high of R 416.75, however, the stock then pared gains to again decline 7.3 percent to its day's low of ₹386.15.
At 10:10 am, the stock was trading 0.3 percent higher at ₹389.45 as against a 0.1 percent or 65 points fall in the benchmark Sensex.
As per reports, the deal is likely to be worth $86 million. The floor price for the same has been set at ₹385.50, a less than 1 percent discount to its previous closing of ₹388.40 (as on June 21, 2023).
Citi has been appointed as the book runner for this stake sale.
This is the third stake sale this week. Yesterday (June 21) Piramal Enterprises sold an 8.34 percent stake in Shriram Finance for ₹4,360 crore. Meanwhile, on June 20, Abrdn Investment Management, formerly known as Standard Life, offloaded its entire 10.2 percent stake in HDFC Asset Management Company via block deals.
The stock has lost almost 25 percent in the last 1 year and since its listing in June last year, the stock has tanked over 20 percent from its IPO price of ₹487.
However, in 2023 YTD, the stock has jumped over 17 percent. It has given positive returns in 3 of the 6 months of the current calendar year, swinging between gains and losses in alternative months.
The stock has surged 11.5 percent in June so far. Meanwhile, it rose 13 percent in April and 14.5 percent in Feb. However, the stock shed 6.7 percent in May, 4 percent in March and 9 percent in Jan.
In the March quarter, the company's net loss widened to ₹159 crore as against a net loss of ₹120 crore in the year-ago period. Meanwhile, its revenue from operations also fell 10 percent to ₹1,860 crore in Q4FY23 as against ₹2,072 crore in Q4FY22.
Delhivery's cross-border services business saw a decline in revenue, despite healthy volumes, hurt by falling global yields in both air and ocean freight and the volume impact of the Chinese New Year holidays, the company said in a statement.
