Delhivery IPO : SEBI approved know dates, price and Market lot

As per the draft Red Herring Prospectus (DRHP), the Delhivery IPO involves issuance of equity shares worth ₹5,000 crore by existing shareholders and an offer for sale (OFS) component of ₹2,460 crore by existing shareholders.

New Delhi: Supply chain company Delhivery has got capital markets regulator SEBI's nod to raise Rs 7,460 crore through an initial public offering (IPO).

As per the draft Red Herring Prospectus (DRHP), the IPO consists of equity shares worth ₹5,000 crore and Offer for Sale (OFS) component of ₹2,460 crore by existing shareholders.

Under the OFS, investors will sell their stake in the logistics company co-founded by Delhivery, along with Carlyle Group and SoftBank.

The company, which filed its initial IPO papers with Sebi in November, received its observation sheet on January 13, showed an update with the regulator on Tuesday.

In the parlance of SEBI, issuance of an observation letter means proceeding for the IPO.

According to draft papers, CA Swift Investments, a unit of Carlyle Group, will sell shares worth ₹920 crore, SVF Doorbell (Cayman) Ltd., a branch of SoftBank Group, will sell shares worth ₹750 crore, Daily CMF Pte Ltd, private equity fund China Momentum Fund A wholly owned subsidiary of the company, LP will sell shares worth ₹400 crore and Times Internet will sell shares worth ₹330 crore.

In addition, Delhivery's co-founders - Kapil Bharti, Mohit Tandon and Sooraj Saharan - will sell shares worth ₹14 crore, ₹40 crore and ₹6 crore respectively.

At present, SoftBank holds 22.78 percent, Carlyle's 7.42 percent and China Momentum Fund holds 1.11 percent in the company.

Bharti holds 1.11 per cent, Tandon 1.88 per cent and Saharan 1.79 per cent in the company.

The proceeds from the new issue will be used to finance organic growth initiatives, inorganic growth financing through acquisitions and other strategic initiatives, and for general corporate purposes.

The e-commerce logistics company operates a pan-India network and provides services to 17,045 Postal Index Number (PIN) codes as on 30th June, 2021.

It provides supply chain solutions to a diverse base of 21,342 active customers, such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across multiple verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive In. and manufacturing.

Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India are the book running lead managers of the issue.

In May, Delhivery announced that it had raised USD 275 million (approximately ₹1,995 crore) in a primary funding round led by Fidelity Management and Research Company. With this capital, the valuation of Delhivery was expected to increase to over USD 3 billion.