Delhivery IPO fully subscribed! Today is the last date to apply for it.

Delhivery IPO fully subscribed! Today is the last date to apply for it. Don't miss these important details!

Today is the last to apply for the Delhivery IPO, as of 1:20 PM, the initial public offering of the supply chain company has been fully subscribed on the final day. As of 1:20 pm, the issue was subscribed 1.16 times while the institutional investors portion was subscribed 2 times.

The company's ₹5,235-crore public issue comprises a fresh issue of up to ₹4,000 crore and an offer for sale of up to ₹1,235 crore. Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery's co-founders will divest their shareholding in the logistics company.

Delhivery is India’s largest fully integrated logistics company with a 22% market share in the ecommerce segment. It provides a range of logistics services like, express delivery, heavy goods delivery, part truck load freight etc. 

The company’s moat is its technology and data science capabilities, for example, it has an application that determines the delivery fleet available as per the orders. 

As per the company’s management they aspire to become a Data science company, and would use the proceeds of the IPO to fund acquisitions to expand their technology and Data science department.

The company’s revenue has been growing, but so are the losses, the company spends Rs. 1.18 for every rupee it earns, its negative cash flow of $2.5 billion and debt of $3.7 billion!.

Although the company is trying to reduce its, as in the last three years its has reduced its debt by four times.

The company's tech savvy business model, its strong brand presence in the ecommerce segment, and its plans on externalizing its operating system would drive the profitability in the coming years.

 

Also Read:

Upcoming IPOs in May 2022

List of Upcoming IPOs in 2022