Supply chain company Delhivery has received capital markets regulator Sebi’s approval to raise Rs 7,460 crore through an initial public offering (IPO). The IPO comprises fresh issuance of equity shares worth Rs 5,000 crore and an offer for sale (OFS) component of Rs 2,460 crore by existing shareholders, according to the draft red herring prospectus (DRHP).
Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery’s co-founders will divest their shareholding in the logistics company. The company, which filed its preliminary IPO papers with Sebi in November, obtained its observations letter on January 13, an update with the regulator showed on Tuesday. In Sebi parlance, the issuance of an observations letter implies its go-ahead for the IPO.
According to the draft papers, CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of Rs 920 crore, SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth 750 crores, Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P. will sell shares worth Rs 400 crore and Times Internet will sell shares worth Rs 330 crore.
In addition, Delhivery’s co-founders — Kapil Bharati, Mohit Tandon and Suraj Saharan– will sell shares worth Rs 14 crore, Rs 40 crore and Rs 6 crore, respectively. At present, SoftBank owns a 22.78 per cent stake, Carlyle has a 7.42 per cent stake and China Momentum Fund has a 1.11 per cent stake in the company. Bharati owns 1.11 per cent, Tondon has 1.88 per cent and Saharan holds a 1.79 per cent stake in the company.
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. The e-commerce logistics company operate a pan-India network and provide services to 17,045 postal index number (PIN) codes, as of June 30, 2021. It provides supply chain solutions to a diverse base of 21,342 active customers, such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across several verticals like FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing.
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. In May, Delhivery had announced that it has raised USD 275 million (about Rs 1,995 crore) in the primary funding round, led by Fidelity Management and Research Company. With this capital, Delhivery’s valuation was expected to rise to over USD 3 billion.