The Delhivery IPO (Initial Public Offering) opens today, May 11, for investors to subscribe, and will be closed on May 13. The company is offering Rs. 5,235 crore for the initial share sale. The price bank of the IPO is Rs. 462- Rs. 487, while a discount of Rs. 25 is available for the company employees. The face value of the IPO is Rs. 1, and the market lot is 30 shares. So, the minimum investment amount is Rs. 13,860 for this IPO bidding. The shares of Delhivery are expected to be listed on stock exchanges BSE and NSE on Tuesday, May 24, this year.
Should You Invest In The Delhivery IPO?
Being positive about the IPO, Yes Securities stated, "We recommend Subscribe rating from a long term perspective given it being largest and fastest-growing 3PL express parcel delivery player, having unified infrastructure network, the vast amount of data intelligence and R&D, experienced professional management team and strong relationship with a diversified customer base." The company's asset-light business model and the cutting‐edge engineering and automation capabilities is expected to help the company's operating efficiencies and profitability.
Additionally, Sahil Barua, MD & CEO of Delhivery stated that despite fuel inflation, the margin has sharply improved over the past few quarters, and e-commerce is the fastest-growing segment. The company has already raised Rs. 2,347 crore from the anchor investors.
As of 12:45 pm today, the Delhivery IPO has been subscribed 0.21 times by the retail investors' category and subscribed 0.03 times by the employees. The NIIs and QIBs are yet to bid.
About the company
Delhivery, the supply chain company has fulfilled more than 1 billion orders across India, in every state. They have 21 automated sort centres, 122 gateways, 93 fulfillment centres, 2521 direct delivery centres, and a team of over 86000 people. The size of the said IPO earlier was fixed at Rs. 7460, however, it has been reduced later. The fresh issuance of equity shares is worth Rs. 4,000 crore and the Offer for Sale (OFS) component is worth Rs.1,235 crore by existing shareholders at present.