Delhivery IPO fully subscribed despite tough market conditions

Logistics service provider Delhivery’s IPO has managed to gain full underwriting despite tough market conditions. The issue was subscribed 1.12 times as of 1:10 pm, data provided by the BSE showed.

The institutional investor’s portion of the issue was subscribed almost twice. Other other categories are not yet fully subscribed.

Delhivery’s Rs 5,235 crore offering requires a subscription from at least 75 per cent institutional investors. The initial public offering has already crossed that threshold.

Delhivery has allocated Rs 2,346 crore worth of shares to 64 anchor investors at Rs 487 each, the upper end of its IPO price band. Amansa, Goldman Sachs, Aberdeen, Tiger Global, Schroder and Baillie Gifford were among the top investors who got an assignment. Mutual funds subscribed to 30 percent of the shares in the anchor book. SBI MF, HDFC MF and HDFC MF were among the national funds that received an allocation.

“In the upper band of its IPO price of Rs 487, Delhivery is valued at 2.4X FY24 EV/Sales. In our opinion, this is an attractive valuation compared to its Bluedart peers (3.1X FY24 EV /Sales) and TCI Express (4.1 X FY24 EV/Sales),” brokerage firm Ventura said in a note.

At the higher end, Delhivery will have a market capitalization of Rs 35,284 crore on a post-diluted basis. Through the initial public offering, the company is seeking to raise Rs 4,000 crore of fresh capital. The remaining Rs 1,235 crore will be offered-for-sale (OFS) investors, which include private equity firms Carlyle and Softbank.

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