The IPO of the logistic company Delhivery was launched on Wednesday at a price band of ₹462-487 per share.
The company will raise ₹4,000 crore via issuance of fresh equity shares with a face value of Re 1 each, whereas its existing shareholders and promoters will offload shares worth ₹1,235 crore via offer for sale (OFS) route.
The IPO is the second biggest for Dalal Street in the calendar year 2022 (CY22) after LIC.
The company has reserved shares worth ₹20 crore for employees who will get shares at a ₹25 discount to the final offer price.
Meanwhile, Delhivery's initial share sale got subscribed 21 per cent on the first day of subscription on Wednesday.
Retail Individual Investors (RIIs) got subscribed 30 per cent, while Qualified Institutional Buyers (QIBs) received 29 per cent subscriptions and non-institutional investors 1 per cent.
Gurugram-based Delhivery Limited is the largest and fastest-growing fully-integrated logistics player in India by revenue as of Fiscal 2021, which has been exclusively commissioned and paid for by it in connection with the Offer.
The company offers a full range of logistics services, including express parcel and heavy goods delivery, part truckload freight ("PTL"), truckload freight ("TL"); warehousing, supply chain solutions, cross border express and freight services; and supply chain software, along with value-added services, such as e-commerce return services, payment collection and processing, installation and assembly services, and fraud detection.
Delhivery’s team of 505 engineering, data, and product professionals (excluding Spoton), as of December 31, 2021, has built proprietary technology systems that enable it to offer integrated logistics services to a wide variety of customers while remaining asset-light and ensuring service quality and efficiency. The technology stack orchestrates its network infrastructure and consists of more than 80 applications that encompass all supply chain processes.
The company has also expanded internationally by establishing a reciprocal partnership with Aramex and a strategic alliance with FedEx, both global express leaders, for customs clearance, pickup, and delivery services.
Delhivery entered into an alliance with Aramex in March 2019, expanding its coverage in the Middle East and North Africa, and providing reciprocal access to Aramex customers to its India network.
Delhivery has built a nationwide network with a presence in every state, servicing 17,488 PIN codes during the nine months period ended December 31, 2021, covering 90.61% of the 19,300 PIN codes in India as of December 31, 2021 (per India Post).