The much-anticipated IPO of Delhivery is finally here, but before the game is on, the logistics and supply chain startup has raised nearly ₹2,347 crore (~$300Mn) from 64 anchor investors.
According to a regulatory filing with the BSE stock exchange, the company decided to allocate about 48 million equity shares (4,81,87,860 shares to be precise) at the price of ₹487 per share. ₹487 is also the upper end of the price band for its IPO. The lower end is ₹462.
Some of the anchor investors include high-profile global investors such as Tiger Global, Bay Capital, Steadview, Fidelity, Baillie Gifford, AIA Singapore, Goldman Sachs, The Master Trust Bank of Japan, Schroders, Amansa Holdings, Aberdeen Standard Life, GIC, Government Pension Fund Global, and Invesco HK.
Several domestic mutual funds also took part in the anchor round, including SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Mirae MF, ICICI Prudential MF, Invesco MF, and Nippon India. Delhivery allocated nearly 14.59 million shares to them.
Coming back to the IPO, you may remember that Delhivery had filed the DRHP for a staggering $1Bn IPO worth back in November. That converts to nearly ₹7500 crores, but now, the size of the IPO has been reduced to ₹5,235 crores.
75% of the issue has been reserved for qualified institutional investors, 15% has been reserved for non-institutional investors, and the remaining 10% for retail investors. Employees of Delhivery will not be left behind either, as the company has set aside shares worth ₹20 crores for eligible employees, and they will get a discount of ₹25 per equity stock during the bidding process.
Delhivery said that it will deploy ₹2000 crores in order to fuel organic growth initiatives such as building scale in existing business lines, developing new adjacent business lines, expanding network infrastructure, and upgrading and improving our proprietary logistics operating system. Another ₹1000 crores will be utilized to fund inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes.
The offer will consist of an offer for sale (OFS) of ₹1,235 crores by existing shareholders and a fresh issue of shares that amounts to up to ₹4000 crores. It opens for subscription today and will remain open till May 13. Those who wish to do so can buy a maximum of 13 lots (each lot containing 30 shares) at the price band of ₹462-487. The allotment of shares will be done on May 19 while the stocks will be listed on BSE and NSE on May 24.
As part of the OFS, both Carlyle Group and SoftBank and the co-founders of Delhivery will be divesting their stakes in the company. While CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of ₹454 crores, the co-founders (Kapil Bharati, Mohit Tandon, and Suraj Saharan) will sell shares worth ₹5 crores, ₹40 crores and ₹6 crores respectively.
Times Internet will sell shares worth ₹165 crores, while SVF Doorbell (Cayman) Ltd, which is an arm of Softbank Group, will sell shares worth ₹365 crores. Additionally, Deli CMF Pte Ltd, a wholly owned subsidiary of China Momentum Fund, will sell shares worth ₹200 crores.