After a tepid LIC listing, Delhivery also made a muted debut on the bourses. The stock listed at ₹493 on BSE, at a 1.2 percent premium to its issue price of ₹487 per share. On NSE, the stock listed at ₹495.20, a 1.7 percent premium to the issue price.
The ₹5,235-crore initial public offer (IPO) of India’s largest logistics service provider Delhivery opened for subscription on May 11 and closed on May 13. It is the second-biggest IPO of 2022 after the mega IPO of LIC.
The size of the IPO was also cut to ₹5,235 crore from ₹7,460 crore planned earlier. The IPO consisted of a fresh issue of shares worth ₹4,000 crore, and an offer-for-sale of ₹1,235 crore. The price band of the issue was set at ₹462-487 a share.
Delhivery IPO was subscribed 1.63 times on the final day of subscription which ended May 13. According to the NSE data, the offer received bids for 10,17,04,080 shares against 6,25,41,023 shares on offer, on the last day of subscription. Qualified institutional buyers portion attracted 2.66 times subscription, while the category for retail individual investors was subscribed 57 percent and that for non-institutional investors 30 percent.
Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, 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, and payment collection and processing, installation and assembly services.
Brokerages had mixed reviews regarding the firm. While some brokerages believed the company's business model will help improve profitability in the coming years, others believed it is aggressively priced given the current market conditions.
Yes Securities gave a subscribe rating to the issue as it believed that the company’s asset-light business model, cutting-edge engineering and automation capabilities will help it leverage operating efficiencies and improve profitability in coming years.
Meanwhile, Samco Securities had an 'avoid' rating on the issue. Considering the current increasing interest rate environment, where valuations of high growth companies across the globe are taking a beating, Delhivery’s expensive valuation is concerning, it had said.
