Delhivery IPO to open on May 11

BENGALURU: Logistics company Delhivery has filed the red herring prospectus with SEBI for a Rs 5,235-crore IPO. The issue size shrank from Rs 7,460 crore it had planned earlier. The issue will open for subscription on May 11. The prospectus showed that the company has reduced its OFS portion from Rs 2,460 crore to Rs 1,235 crore.

Private equity investors such as Carlyle have pared their OFS portion from Rs 920 crore to Rs 454 crore. SoftBank too has reduced its portion by half from Rs 750 crore to Rs 365 crore. Delhivery co-founders will participate in the OFS.

In the run-up to going public, the logistics player has appointed three independent directors, including Kalpana Morparia, the former chairman of JPMorgan Southeast Asia, Romesh Sobti, former CEO and managing director of Indusind Bank, and Saugata Gupta, CEO and managing director of Marico. Delhivery covers over 17,000 pin codes.

The company provides a full suite of logistics services such as express parcel transportation, PTL, TL freight, cross-border, supply chain, and technology services. Delhivery has fulfilled over 1 billion shipments and works with over 21,000 customers.

Recently, Delhivery has invested in Falcon Autotech, a logistics automation solutions provider. The investment is in line with Delhivery’s objective of sustained investments in future-ready hardware solutions in its operations. Delhivery operates 20 automated sortation centres, 124 gateways, and 83 fulfillment centres across India as of June last year.

Sources told TOI that Delhivery plans to deploy Rs 2,000 crore to expand its existing business lines and invest in adjacencies, grow its network infrastructure, and upgrade and improve its logistics operating system. It also plans to deploy Rs 1,000 crore to fund its acquisition plans.