Shares of Delhivery Limited listed at premium on Tuesday. Delhivery stock opened at Rs 493, up 1.2 per cent from the offer price of Rs 487 per share. On NSE, Delhivery share started at Rs 495.2, up 1.7 per cent to the upper end of the initial public offering price.
Delhivery, the largest and fastest growing fully-integrated logistics player by revenue, opened its IPO between May 11-13. The price band was set between a rang of Rs 462 to Rs 487 apiece. At the upper-end of the price band, the company aimed to raise Rs 5,235 crore from its public offer.
However, the Delhivery IPO received muted response from the investors during the subscription period. The public issue was booked 1.63 times, according to the date available at NSE. Delhivery IPO received bids for 10.17 crore shares against 6.25 crore shares on offer. Analysts pointed out expensive valuation and volatile stock market condition behind the low interest for Delhivery IPO. The issue was subscribed overall 1.63 times. The quota reserved for qualified institutional buyers (QIBs) was subscribed 2.66 times. The portion set aside for non-institutional investors (NIIs), retailers and eligible employees was subscribed 30 per cent, 57 per cent and 27 per cent, respectively.
“We believe reason for low subscription was investors fear on business operation continued losses on books and followed by aggressive IPO valuations,” said Prashanth Tapse, vice president (Research), Mehta Equities Ltd.
On valuation of Delhivery IPO, Yash Gupta, equity research analyst, Angel One Ltd said, “If we look at a valuation based on annualized FY22 numbers, the IPO is priced at EV/Sales of 4.8x and Price to Book value of 5.2x at the upper price band of the IPO. For 9MFY22 the company has reported an EBITDA loss of Rs 232 crore and a Net loss of Rs 891 crores.”
“Delhivery shares has listed at 2 per cent premium over issue prices. And, are currently trading around 5-7 per cent premium. Considering the volatility in Indian benchmarks company has made a decent debut. Before the debut also we believed that the logistics startup is not meant for listing gains but can reap benefits in long term considering improvement in their financial health, said Mohit Nigam, head, PMS, Hem Securities.
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