Delhivery Limited, the largest and fastest growing fully integrated logistics company in the country is all set to begin its Dalal Street journey on Tuesday. delhivery stock Will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on May 24 at 10 am. In the midst of a volatile market, Delhi very initial public offering (IPO) witnessed muted response from investors during the subscription period.
The logistics solutions provider is targeting to raise Rs 5,235 crore from its maiden offering. delhivery ipo Was open for subscription between 11-13 May. Price Band for Delhi IPO 462-487 was set at Rs.
Delhivery’s IPO overall got subscribed 1.63 times. The quota reserved for Qualified Institutional Buyers (QIBs) was subscribed 2.66 times. The share set aside for non-institutional investors (NIIs), retailers and eligible employees stood at 30 per cent, 57 per cent and 27 per cent, respectively.
The unlisted share of Delhivery was trading at a discount of Rs 5 in the gray market on Tuesday. Weak investor response and poor gray market premium indicate a sluggish list of Delhi IPOs on May 24.
Delhivery Share Listing Today: What to Expect
“We are looking forward to another soft listing of the new IPO, we expect Delhivery to open its offer price close to Rs 462-487. We have given a neutral rating to Delhivery IPO on the back of high valuations. If we look at the valuations based on FY22 annual data, the IPO is priced at EV/sales of 4.8x and the IPO has a value at book value of 5.2x on the upper price band. For 9MFY22, the company has reported an EBITDA loss of Rs 232 crore and a net loss of Rs 891 crore. If we look at the gray market premium, as per different market news, GMP of Delhi IPO is trading at Rs.5. Hence, given the high valuations and some correction in the market in the last two weeks, we are expecting a soft listing of the Delhi IPO. Yash Gupta, Equity Research Analyst, Angel One Limited said.
“Given lower-than-expected subscription demand for its initial public offering (IPO), we expect modest flat listing gains of + or -5 per cent in the best-case scenario given market volatility. We believe the reason for the low subscription was investor fears regarding the conduct of the business, which was consistent losses on the books and subsequent aggressive IPO valuations,” said Prashant Taapsee, Vice President (Research), Mehta Equities Ltd.
Delhivery is the largest and fastest growing fully integrated logistics company in India India by revenue. It provides a full range of logistics services including Express Parcel and Heavy Freight Delivery, Part-Truck Load Freight (PTL), Truckload Freight (TL), Warehousing, Supply Chain Solutions, Cross Border Express and Freight Services and Supply Chain Software Is. With value-added services, such as e-commerce return services, payment collection and processing, installation and assembly services and fraud detection.
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