Supply chain company Delhivery on Tuesday raised Rs 2,347 crore from anchor investors, ahead of its initial share-sale, which opens for public subscription on Wednesday The company has decided to allocate a total of 4,81,87,860 equity shares to anchor investors at Rs 487 apiece, which is also the upper end of the price band, aggregating the transaction size to Rs 2,346.74 crore, according to a circular uploaded on the BSE website.
AIA Singapore, Amansa Holdings, Aberdeen New India Investment Trust Plc, Goldman Sachs, The Master Trust Bank of Japan, Government of Singapore, Monetary Authority of Singapore, Fidelity, Tiger Global Investments Fund, Steadview Capital Master Fund, Morgan Stanley Asia (Singapore) Pte, Societe Generale and Segantii India Mauritius are among the anchor investors.
In addition, SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Mirae MF, ICICI Prudential MF, Invesco MF and Nippon India too participated in the anchor round. The size of the initial public offer (IPO) has been cut to Rs 5,235 crore from Rs 7,460 crore planner earlier. The public issue now comprises fresh issuance of equity shares worth Rs 4,000 crore and an offer for sale (OFS) component of Rs 1,235 crore by existing shareholders.
Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery’s co-founders will divest their shareholding in the logistics company. CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of Rs 454 crore, SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth Rs 365 crore, Deli CMF Pte Ltd, a wholly owned subsidiary of private equity fund China Momentum Fund, L.P. will sell shares worth Rs 200 crore and Times Internet will sell shares worth Rs 165 crore.
In addition, Delhivery’s co-founders — Kapil Bharati, Mohit Tandon and Suraj Saharan– will sell shares worth Rs 5 crore, Rs 40 crore and Rs 6 crore respectively. At present, SoftBank owns 22.78 per cent stake, Carlyle has 7.42 per cent stake, Bharti owns 1.11 per cent, Tondon has 1.88 per cent and Saharan holds 1.79 per cent stake in the company. The public issue, with a price band of Rs 462-487 a share, will open for subscription on May 11 and conclude on May 13.
Proceeds of the fresh issue will be used towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives and for general corporate purposes A total of 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. In addition, the company has set aside shares worth Rs 20 crore for eligible employees, who will get a discount of Rs 25 per equity stock during the bidding process.
Investors can bid for a minimum of 30 equity shares and in multiples thereof. Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, warehousing, supply chain solutions, cross-border express and freight services and supply chain software, along with value added services such as e-commerce return services, payment collection and processing, installation and assembly services.
The e-commerce logistics company operates a pan-India network and provides services in 17,045 postal index number (PIN) codes. The company’s express parcel delivery network, which serviced 17,488 PIN codes in the nine months ended December 2021, covered 90.61 per cent of the 19,300 PIN codes in India. The company provides supply chain solutions to a diverse base of 23,113 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing.
The Gurugram-based company said about five customers contributed to more than 40 per cent of its revenues in FY21. Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India are the book running lead managers to the issue. The equity shares of the supply chain company will be listed on the stock exchanges — BSE and NSE — on May 24. In August, Delhivery acquired Spoton to further scale their partial truckload (PTL) freight services business.