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This Week's Share Allotment for Delhivery's IPO; Find Out Important Information

On the final day of the subscription, qualified institutional buyers' last-minute demand helped logistics and supply chain business Delhivery complete its Rs 5,235 crore IPO. Up until the second day of the public offering, interest in the Delhivery IPO was muted; nevertheless, by the third day, the issue had narrowly escaped and was completely subscribed. On May 19, a Thursday, shares will likely be allocated for the Delhivery IPO. Investors who place unsuccessful bids will receive a refund on May 20 and credits to their Demat accounts on May 23. Delhivery's IPO is expected to list on May 24.

Delhivery IPO Subscription Status

The Delhivery IPO had a respectable reaction from investors as of Friday's final opening, with bids for 10,17,04,080 shares placed versus 6,25,41,023 shares offered for sale. Due in large part to the QIBs' overwhelming response, the issue was booked 1.63 times on Day 3. Non-institutional subscribers only purchased 30% of the shares authorized for them, compared to institutional buyers who placed bids for 2.66 times the number of shares allotted to them. 57% of the shares offered to retail individual investors were subscribed for. Before the IPO, Delhivery finalized the allocation of 4,81,87,860 equity shares to anchor investors on Monday, May 9, 2022, for a total of Rs 2,346.74 crore, at an allocation price of Rs 487 per share.

Delhivery IPO Financials

According to the prospectus for the selling of its 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.

Delhivery IPO GMP Today

Given the lack of interest from most investors other than QIBs, the unlisted shares of the Delhivery IPO are likewise not performing well on the grey market. The grey market has shown relatively little interest in the Delhivery IPO. According to experts, this coincides with the period when markets are volatile.

According to Yes Securities, the company's asset-light business strategy, state-of-the-art engineering, and automation capabilities will enable it to increase profitability in the years to come. A unified infrastructure network, a proprietary technological stack and capabilities, a significant amount of data intelligence and R&D, and strong relationships with a wide range of clients are among the brokerage's highlighted strengths for the business. According to brokerage firm Angel Brokerage, the company recorded an EBITDA loss of Rs 232 crores and a net loss of Rs 891 crores for 9MFY22. Delhivery experienced strong sales growth of 82% during this time, and by the end of FY22, it is anticipated to achieve positive EBITDA. Due to its heavy reliance on express parcel services and with the concentration of a narrow group of consumers, a slowdown in e-commerce services in India will affect the company. 41% of the entire revenue comes from the top five clients.

In India, Delhivery is a leading provider of fully integrated logistics services. These services include cross-border express and freight, part-truckload and truckload freight, warehousing, and express package and heavy goods delivery. In addition, it provides value-added services and supply chain software, including e-commerce return services, payment collecting and processing, installation and assembly, and fraud detection.

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