Delhivery, an unicorn upstart that has made aggressive strides in India’s $ 200 billion logistics market, today debuted its shares on public exchanges with a 1.7% margin. And while that may not be very, but given that even LIC has yet to reach its release price and its a very bear market, Delhivery has worked decently. In fact, on the day of his debut it ended 10% higher, ending at Rs 536.25.
Compared to Delhivery’s IPO price of Rs 483 per share, the shares are trading at a premium of 1.2% on BSE and 1.7% on NSE on debut. Delhivery’s IPO has invited subscriptions through the window from May 11 to May 13, through which the company raised 5235 crore rupees, well below them expected amount of 7460 crores.
The subscription window was not particularly enthusiastic as the IPP was signed 1.63 times, receiving bids for 10,17,04,080 shares versus the 6,25,41,023 shares originally offered. The portion set aside for eligible institutional buyers performed slightly better and was signed 2.66 times. The HNI quota and retail were signed at 30% and 57% respectively.
Market experts have predicted a slow opening of Delivery, given the muted reaction of potential investors. The day before the IPO, the shares were traded on the gray market at a discount of 5 rupees, which further hinted at a muted response.
Launched in June 2011, Delhivery is India’s largest fully integrated logistics revenue service and offers a wide range of logistics solutions such as warehousing, supply chain solutions, cross-border express services and supply chain software.
Founded by Sahil Barua, Mohit Tandon, Bhaves Manglani and Kapil Bharati, the company achieves an impressive 88% of India’s 19,300 registered PINs. Delivery’s profit by December 2021 was Rs 5,170 crore. Another name in SoftBank Vision’s long fund portfolio, they are became a unicorn in 2019 after the $ 413 million F Series round.