Delhivery IPO: Compared to the first two days of bidding, when only 23% of the shares were subscribed, the initial public offering (IPO) of logistics company Delivery Limited saw a good subscription rate on its closing day. The Delhivery IPO saw a subscription of 1.63 times the shares on offer as of Day 3 of the bidding, mostly as a result of an outstanding response from Qualified Institutional Buyers (QIB). The 5,235 crore Delhivery IPO share allotment was completed two days ago, and investors who placed winning bids should see the funds credited to their Demat accounts by Monday, May 23.
Delhivery IPO GMP Today
Grey market observers claim that the Delhivery IPO's GMP (grey market premium), which was minus Rs 5 yesterday, is unchanged today. Market watchers reported that the Delhivery IPO GMP today is less than Rs 5, meaning that the grey market anticipates the listing price of the Delhivery IPO to be around Rs 482 (Rs 487 - Rs 5), which is about 1% less than the top end of the Delhivery price of Rs 487 per equity share.
Market experts claim that an IPO's GMP, which is unofficial and uncontrolled data, is not a trustworthy source. Therefore, individuals that adhere to GMP are urged to review the company's financials as well because the balance sheet will provide a clearer picture of the company's foundations.
What Experts Say on Delhivery IPO Listing Gains
Market commentators predicted that the issue might list at a discount on NSE and BSE because of the Delhivery IPO's exorbitant valuations and the unfavorable market conditions.
The investor response to Delhivery's IPO was depressing. The issuance, however, was supported by the subscription of QIB investors. Although the company reported strong sales growth, losses also rose significantly, which alarmed investors. The listing may suffer from expensive valuations and unfavorable market conditions. According to Abhay Doshi, creator of UnlistedArena.com, which deals in Pre-IPO and unlisted shares, the IPO might list around the issue price, and if the market situation worsens, we might even see a discount listing in the future.
Delhivery IPO Financials
According to its prospectus for the sale of shares, Delhivery has never reported a profit. For the nine months that ended in December 2021, the company lost Rs 891.14 crore, and for the entire fiscal year 2021, it lost Rs 415.7 crore. The nine months ending in December saw revenue of Rs 4,911 crore, compared to Rs 3,838 crore in FY21. In contrast to the $848 billion recorded in FY20, it reported a negative free cash flow of Rs 246 crore in FY21. In the first nine months of FY22, freight, handling, and servicing charges increased from Rs 2,026 crore to Rs 3,480 crore.
On May 11, the Delhivery IPO began, and on May 13, it ended. On Monday, May 24, the Delhivery IPO is anticipated to list on the stock exchanges. Both the NSE and the BSE will list the public issue.