Delhivery IPO fully subscribed despite challenging market conditions

Logistics services provider Delhivery’s IPO has managed to garner full subscription despite challenging market conditions. The issue was subscribed 1.12 times as at 1:10pm, data provided by the BSE showed.

The institutional investor portion of the issue was subscribed nearly two times. Other other categories are not yet fully subscribed.

Delhivery's Rs 5,235-crore offering requires at least 75 per cent subscription from institutional investors. The IPO has already crossed that threshold.

Delhivery has alloted Rs 2,346 crore worth of shares to 64 anchor investors at Rs 487 apiece, the upper end of its IPO price band. Amansa, Goldman Sachs, Aberdeen, Tiger Global, Schroder and Baillie Gifford were among anchor investors who got an allotment. Mutual funds subscribed to 30 per cent of the shares in the anchor book. SBI MF, HDFC MF and HDFC MF were among the domestic funds who got an allotment.

"At the upper band of its IPO price of Rs 487, Delhivery is valued at 2.4 times FY24 EV/Sales. This in our opinion is an attractive valuation when compared with peers Bluedart (3.1X FY24 EV/Sales) and TCI Express (4.1X FY24 EV/Sales),” broking firm Ventura said in a note.

At the top-end, Delhivery will have a market cap of Rs 35,284 crore on a post-diluted basis. Through the IPO, the company is looking to raise Rs 4,000 crore of fresh capital. The remaining Rs 1,235 crore will be an offer for sale (OFS) investors, which include private equity firms Carlyle and Softbank.