Delhivery: First Unicorn of the Year to Get SEBI’s Green Light for IPO

To kickstart another year replete with IPOs, SEBI (Securities and Exchange Board of India) has given Delhivery the green light to float their IPO.

Doing this has made this Gurugram-based logistics firm the first unicorn this year to receive the stock market regulator’s approval to list on domestic bourses.

On that note, let’s look at some of the details regarding this public issue.

Key Highlights of Delhivery’s Initial Public Offer

• Market regulator SEBI (Securities and Exchange Board of India) has supposedly approved the Rs. 7,460 crores IPO of Delhivery. Certain people aware of the matter told the Economic Times.
• The Initial Public Offer is of a dual flavour. There will be a fresh issuance of shares and an offer of sale.
• Via the issuance of new shares, Delhivery will try to garner Rs. 5,000 crores. Moreover, the initial public offer will have a component of Rs. 2,460 under the offer of sale category. Some of the existing shareholders will sell part of their holdings.
• Given below is a list of investors who will be divesting their shares:
  • SoftBank Vision fund
  • Carlyle
  • Times Internet, which is a part of the Times Group
  • Kapil Bharati
  • Mohit Tandon
  • Suraj Saharan

• When filing the Draft Red Herring Prospectus Paper, this company was seeking a valuation of around $6-$6.5 billion.

Know About the Company

Delhivery is one of the most prominent logistics start-ups in the country. It has acquired Noida-based company Falcon Autotech, a manufacturer of warehouse automation products.

Previously, Delhivery acquired Spoton Logistics for $300 million through an all-cash deal. Later, in December 2021, the company also acquired Transition Robotics Inc., which is a drone start-up based in California.

Bottom Line

While Delhivery may have achieved unicorn status, it is still a loss-making entity. However, it remains to be seen how this company will perform on the bourses, given that several new rules have been implemented.

Source: Economic Times

Frequently Asked Questions

1. What was the revenue of Delhivery in FY 2020-21?

Ans. Delhivery showed a revenue of Rs. 3,646.5 crores in its reports during the FY 2020-21.

2. How many customers does the company have?

Ans. The company has over 21,000 customers, alongside e-commerce firms and direct-to-home companies.

3. What was the net loss of the company?

Ans. In the fiscal of 2020, this company reported a loss of Rs. 415.7 crores.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.