Delhivery IPO Open Up on 11th May Reduces Issue Size By 30%

Delhivery IPO News

The initial share sale of Delhivery is scheduled to begin on the 11th of May, according to the information that is available at the exchanges. The media reports suggest that the size of the issue is now at Rs 5,235 crore in the wake of market volatility and uncertain geo-political circumstances.

The company originally set out to raise Rs7,460 crore via an initial public offering (IPO). The IPO consists of fresh equity issues that can reach Rs.4,000 crore as well as an offer to sell shares totalling up to 1235 crores.

Under the OFS, the investors Carlyle Group and SoftBank as together with Delhivery's co-founders are expected to sell their stakes in the company that handles logistics.

In the draft documents, CA Swift Investments, an entity belonging to Carlyle Group, will sell shares worth the amount of Rs454 crore. SVF Doorbell (Cayman) Ltd which is an arm that is part of Softbank Group, will offload shares worth Rs365 crore. Deli CMF Pte Ltd, an entirely-owned subsidiary of the private capital funds China Momentum Fund, L.P. will auction shares worth 200 crores, and Times Internet will sell shares worth the sum of Rs165 crore.

Additionally, the co-founders of Delhivery the trio of Kapil Bharati Mohit Tandon and Suraj Saharanwill sell shares for Rs5 crore in cash, Rs40 million and Rs6 crore, respectively.

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The proceeds of the fresh issue will be used for the financing of organic growth initiatives, as well as funding growth through acquisitions, and other strategic initiatives as well as for general corporate objectives.

Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities India along with Citigroup Global Markets are leading the IPO. The company that handles logistics for e-commerce has an all-India network and provides services to 17 045 post index number (PIN) codes up to June 30th, 2021.

It offers solutions for supply chain management to a wide range of 21,342 customers who are active including direct-to-consumer online retailers, e-commerce marketplaces and small and medium-sized enterprises across a variety of verticals, including FMCG and consumer durables consumer electronics and lifestyle, retail, manufacturing and automotive.

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