Delhivery IPO had 1.63x oversubscription due to QIB assistance on Day 3

Delhivery, a logistics and supply chain firm, received a last-minute torrent of demand from qualified institutional purchasers, allowing it to complete its IPO on the last day. The Delhivery IPO received a moderate reaction until the second day of the public offering, but by the third day, it had just escaped being completely subscribed. The offering was oversubscribed by 1.6 times, with offers for 101.6 million shares outnumbering the 62 million available. Until the second day of the sale, just 23% of the public offering had been subscribed.

Delhivery IPO subscription status

Despite difficult market circumstances, the issuance was approved on Friday thanks to last-minute bids from mutual funds and overseas institutional investors. On the last day, the part reserved for eligible institutional purchasers (including MFs and FIIs) was subscribed 2.6 times. However, even on the final day of bidding, the retail, employee, and HNI quotas remained under-subscribed. The retail quota earned 57% subscription, while the employee and HNI quotas received 27% and 30% subscription, respectively.

Delhivery IPO GMP Today

Due to the lacklustre response from most investors other than QIBs, the unlisted shares of the Delhivery IPO are likewise not doing well on the grey market. According to market experts, the Delhivery IPO GMP is Rs.2 today. The Delhivery shares are scheduled to list at Rs489 at the top of the price band. This coincides with a period of high volatility in the markets.

GMP of an IPO, on the other hand, is not a reputable source, according to market analysts, because it is unregulated and unofficial data. Those that adhere to GMP should also review the company’s financials, since the balance sheet will provide a clearer understanding of the company’s fundamentals.

Delhivery IPO Allotment and Listing Date

The date for the Delhivery IPO’s share issuance is scheduled to be May 19, which is next Thursday. Investors who do not get bids will receive a refund on May 20 and credits to their demat accounts on May 23. The Delhivery IPO is expected to go public on May 24th.

Delhivery IPO Details 

The price band for the transaction was established at Rs.462-487 per share, and Delhivery aimed to generate up to Rs.5,235 crore through the first public offering. The logistics company will be valued at Rs.35,284 crore when it goes public.

The company received Rs.2,346.74 crore from anchor investors earlier this week, assigning a total of 4,81,87,860 equity shares at a price of Rs.487 each. Top foreign investors who participated in the anchor book included AIA Singapore, Tiger Global Investments Fund, and Societe Generale. SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Mirae Mutual Fund, and Nippon India Mutual Fund were among the domestic mutual funds that took part in the anchor round.

As of FY21, Gurugram-based Delhivery is India’s largest and fastest-growing fully-integrated logistics services company by revenue. In the six months ending June 30, 2021, the business created a statewide network, servicing 17,045 PIN numbers, or 88.3 percent of India’s 19,300 PIN codes. The firm recorded sales of Rs.4,911 crore for the nine months ending December 2021, with a net loss of Rs.891.14 crore for the same period.