Shares of Delhivery Ltd made stock market debut on Tuesday with the stock listing at ₹495 on the NSE, a premium of nearly 2% from its IPO issue price of ₹487 per share. On BSE, Delhivery shares started trading at ₹493 apiece, and later surged to ₹540 in early deals.
“The company’s tepid listing can be attributed to the current market conditions and the loss-making nature of the company. The company has a good track record of execution built on its proprietary technology and has scaled up significantly. However, the logistics industry is extremely competitive and the company is yet to turn profitable. New investors must wait and watch the strategy of the company and should only invest once the concrete plans to turn profitable are laid down,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The initial public offering (IPO) of supply chain company Delhivery was subscribed 1.63 times on its final day of subscription. Qualified institutional buyers portion attracted 2.66 times subscription, while the category for retail individual investors was subscribed 57 per cent and that for non institutional investors 30 per cent.
The initial share sale had a price range of ₹462-487 per share. The public issue of ₹5,235 crore had a fresh issue of up to ₹4,000 crore and an offer for sale (OFS) of up to ₹1,235 crore. Delhivery raised ₹2,347 crore from anchor investors ahead of its public offer.
Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery and warehousing. Proceeds of the fresh issue will be used towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives and for general corporate purposes.
Morgan Stanley India Company, Kotak Mahindra Capital Company, BofA Securities India and Citigroup Global Markets India were the managers to the offer.