Delhivery stock jumps over 10% on market debut
SoftBank-backed logistics firm Delhivery’s stock surged as investors brushed off rising global risks to support the country’s second-largest IPO of the year in its market debut. The shares climbed over 10% to Rs 536, versus the issue price of Rs 487. The company and its shareholders, including Carlyle’s CA Swift Investments and SoftBank Vision Fund’s SVF Doorbell, raised Rs 5,235 crore through the sale of both new and secondary shares.
Venus Pipes & Tubes, which also debuted on the exchanges on Tuesday, closed with a gain of 8.7%. The listing day pop contrasts with last week’s debut of LIC, which dropped 7.8% on its first trading day after an IPO that raised a record $2.7 billion. Delhivery’s positive start may provide encouragement for companies waiting to tap capital markets amid ongoing global volatility.
Founded in 2011, Delhivery is one of the largest fully integrated logistics companies, serving over 17,000 postal codes with a team of 86,000 people, according to its website. Its IPO was oversubscribed 1.63 times, with a pick-up in demand coming on the last day and supported mostly by qualified institutional buyers. Non-institutional investors, retail individuals and employees placed smaller bids than the portions reserved for them.