Delhivery Ipo Subscription Status: Delhivery IPO subscribed 1.63 times; retail, employee quota remains undersubscribed

New Delhi: Stumbling throughout three days, the Rs 5,235 crore initial public offering (IPO) of logistics and supply chain solution startup Delhivery finally managed to garner enough application to successfully close its issue.

According to data from BSE, investors bid for 10,16,91,480 equity shares or 1.63 times the 6,25,41,023 equity shares offered in the IPO. The portion for retail bidders was subscribed 57 per cent, whereas institutional investors attracted 2.66 times bids. The employee quota saw only 27 per cent bids. The portion reserved for HNI investors was subscribed 30 per cent.

The company had reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), whereas non institutional buyers (NIIs) got 15 per cent allocation. Remaining 10 per cent shares were given to retail bidders.

Gurugram-based Delhivery is the largest fully integrated logistics services player in India by revenue. It has built a nationwide network in every state, servicing 17,045 PIN codes or 88.3 per cent of the 19,300 PIN codes in India.

The company will raise Rs 4,000 crore via issuance of fresh equity shares with a face value of Re 1 each, whereas its existing shareholders and promoters will offload shares worth Rs 1,235 crore via offer for sale (OFS) route.

Majority of the brokerages have recommended to skip the issue following its pricey valuations, mounting losses, rising fuel prices and the latest rout in listed startup counters. However, a few have recommended it for a longer term.

Securities said Delhivery has an integrated platform with a full range of supply chain services, vast amounts of data intelligence, and rapid growth at scale.

“The continued losses and aggressively priced IPO hardly leaves anything meaningful on the table for investors with a medium-term perspective,” it added without rating the issue.

Another brokerage firm Hem Securities, has recommended ‘avoid’ for short term but is positive for the long term.

The company has been showing rapid growth and extensive scale with its proprietary logistics operating system & vast data intelligence capabilities, said the brokerage.

A day before its IPO, Delivery allocated a total of 4,81,87,860 equity shares to anchor investors at Rs 487 apiece aggregating the transaction size to Rs 2,346.74 crore, according to a circular uploaded on the BSE website.