IPO Update: Delhivery IPO Price Band and listing Date announced: Key Details

The subscription period for Delhivery Limited’s initial public offering (IPO) will begin next week. Delhivery Limited offers logistics, heavy goods, and freight services.

In the unlisted market, shares of logistics and supply-chain startup Delhivery Ltd are down about 40% from their peak of Rs 950 in January, just before of its first public offering (IPO).

On thin trading volume, the stock is trading at Rs 550-600 per share, according to a dealer.

SUBSCRIPTION DATE FOR DELHIVERY IPO

The subscription period for the Delhivery IPO will begin on May 11. According to the corporation, the three-day initial share offering will end on May 13 and the bidding for anchor investors will begin on May 10.

DETAILS ON THE DELHIVERY IPO PRICE

The initial public offering (IPO) has a face value of Rs 1 per share. 30 shares make up a lot. The IPO price for Delhivery has been set at Rs 462 to Rs 487 per share. The total size of the IPO is Rs 5,235 crore. The fresh issue accounts for Rs 4,000 crore of the total. The asking price for the property is Rs 1,235 crore.

FINANCIAL METRICS OF DELHIVERY

The financials of Delhivery aren’t terrific. According to its share-sale prospectus, it has never made a profit.

For the nine months ending December 2021, the company lost Rs 891.14 crore, while for FY21, it lost Rs 416 crore. Revenue was Rs 4,911 crore in the nine months ended December, compared to Rs 3,838 crore in FY21.

It had a negative free cash flow of Rs 246 crore in FY21, compared to Rs 848 crore in FY20. Similarly, freight, handling, and servicing costs have increased from Rs 2,026 crore in FY21 to Rs 3,480 crore in MFY22.

On May 24, the company will go public on the stock exchanges. The basis for allotment will be May 19, with shares credited to investors’ demat accounts on May 23. The company has reduced the size of its overall offer from Rs 7,460 crore to Rs 5,235 crore. It will now raise Rs 4,000 crore through a new public offering  and Rs 1,235 crore through an offer for sale.