Delhivery IPO

Delhivery Limited is India’s biggest and fastest-growing fully-integrated logistics services company in terms of revenue as of Fiscal 2021, according to the RedSeer Report they commissioned. Delhivery IPO will hit the market in 11 May 2022.

About Delhivery

Delhivery want to create a commercial operating system. Three operating concepts guide their business:

People-centricity: Our infrastructure, network, and technology enable us to address supply-chain issues that affect millions of people on a daily basis.

Partnership-based growth: They think that systemic transformation necessitates cooperation and collaboration. Both infrastructure and technology capabilities are built to be available to their Indian and international partners.

Always be efficient: Their consumers can accomplish more with what they have if they save money. Across the supply chain, they are constantly striving for efficiency and creative methods to cut costs.

Operation

Their objective is to help clients run cost-effective, flexible, reliable, and resilient supply chains. As of the three months ended June 30, 2021, they provided supply chain services to a diverse base of 21,342 Current Users.

This is including e-commerce marketplaces, direct-to-consumer e-tailers, enterprises & SMEs across several verticals, including FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive, and manufacturing.

This is accomplished through high-quality logistics infrastructure and network engineering, a large network of local and international partners, and major automation expenditures, all of which are controlled by their in-house logistics operating system.

Business Approach

Their strategy is to invest in core service elements and IP-sensitive network areas while offering services through a diverse network of partners. Their partner applications allow network partners with warehouse, freight (truckload or air), or first/last-mile capacity to sign up and locate customers.

Their platforms work as managed marketplaces, matching partner capacity with internal and third-party customer demand based on service quality ratings and pricing.

They were able to quickly grow to geographically separated locations, optimise loads, improve their cost structure, and guarantee flexibility in dealing with seasonal variations and changes in customers’ needs thanks to this technique.

Delhivery IPO

Delhivery Limited, headquartered in Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 7460 crores on 01 November 2021.

The offer includes fresh issue of INR 5,000 crores value equity shares and there is an offer for sale (OFS) of 2460 Crore value equity shares by the Shareholders mentioned in the DRHP. They are not looking for any pre-IPO placement in this issue.

They got for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	6,582.19	4,597.80	4,357.31	4,062.54
Total Revenue	1,364.01	3,838.29	2,988.63	1,694.87
Loss After Tax	(129.58)	(415.74)	(268.93)	(1,783.30)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(8.05)	(8.05)	3
Financial Year 2020	(5.22)	(5.22)	2
Financial Year 2019	(47.22)	(47.22)	1
Weighted Average	(13.64)	(13.64)
30 June 2021	(2.41)	(2.41)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel the following are among the qualitative aspects that go into determining the Offer Price:

• Rapid expansion, broad scale, and improved unit economics.
• Their in-house logistics management system.
• Capabilities for large-scale data intelligence.
• Their network engineering and design.
• Their comprehensive logistical services portfolio.
• Strong customer relationships with a wide range of clients.
• A large ecosystem of partners allows for a low-asset company model with a wide reach.
• Professional team with a lot of experience.

Delhivery IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	5	Blue Dart Express Limited	153.31
2	10	TCI Express Limited	67.97
3	10	Mahindra Logistics Limited	158.04

Note:

1. From the NSE portal, the closing price of these equity shares on October 28, 2021.
2. All financial data for listed industry peers is consolidated (unless otherwise stated) and derived from the respective firm’s annual results/reports for the fiscal year ended March 31, 2021.

Delhivery IPO Details

IPO Opening Date	11 May 2022
IPO Closing Date	13 May 2022
Issue Type	Book Building
Face Value	1 per share
IPO Price	462 to 487 per equity share
Market Lot	30 share
Min Order Quantity	14610
Listing At	BSE, NSE
Issue Size	7,460 Crores
Fresh Issue	5,000 Crores
Offer for Sale	2,460 Crores

Delhivery IPO Date

Delhivery IPO opening date is 11 May 2022, and the closing date is 13 May 2022. The Delhivery IPO issue may list in 24 May 2022.

IPO Opening Date	11 May 2022
IPO Closing Date	13 May 2022
Basis of Allotment Date	19 May 2022
Initiation of Refunds	20 May 2022
Credit of Shares to Demat Account	23 May 2022
IPO Listing Date	24 May 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum level of 1 lot, based on availability, for every shareholder.

Delhivery IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Delhivery IPO.

Delhivery IPO GMP

Delhivery IPO Grey Market Premium is -6. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
21 May 2022	-6	0	0
20 May 2022	-4	0	0
19 May 2022	-1	0	0
18 May 2022	0	0	0
17 May 2022	-3	0	0
16 May 2022	-1	0	0
15 May 2022	-2	0	0
14 May 2022	-3	0	0
13 May 2022	-5	0	0
12 May 2022	-2	0	0
11 May 2022	2	0	0
10 May 2022	10	0	0
09 May 2022	09	0	0
08 May 2022	11	0	0
07 May 2022	12	0	0
06 May 2022	14	0	0
05 May 2022	19	0	0
04 May 2022	21	0	0

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Delhivery IPO Review

Delhivery IPO review: Please avoid this IPO.

Delhivery IPO Risk

• For their commercial operations, they rely on a scalable, automated, and unified network infrastructure, which is mostly comprised of their logistics and transportation services.
• Any delays to their logistics and transportation infrastructure could have a significant negative impact on their operations and financial results.
• For certain elements of their operation, they rely on network partners and other third parties, which introduces additional risks.
• Despite their efforts to broaden their customer base, e-commerce customers account for the majority of their shipment volume.
• They operate in a highly fragmented business with fierce competition, which could have a negative impact on their operating results and market share.

Other Threats

• Certain large customers account for a significant amount of their revenue.
• Their industry is governed by a number of laws and regulations that are continuously changing.
• They are exposed to risks related to shipments handled and carried through their network, as well as transportation and cash-on-delivery threats.
• The ongoing COVID-19 pandemic is having and will continue to have a major and negative impact on their business.
• Their logistics premises are all leased, and some of their lease agreements may have some issues.
• Their company creates and processes a considerable amount of sensitive consumer information.
• Their reputation could be harmed if they fail to protect that client’s data from unauthorised access.

Sortation Centres

As of June 30, 2021, they have 20 completely and semi-automated sortation centres and 86 gateways throughout India (excluding Spoton).

As of June 30, 2021, they had a Rated Automated Sort Ability of 3.17 million shipments per day, which they increased to more than 3.98 million shipments per day by September 30, 2021.

At their gateways in Tauru (Haryana), Bhiwandi (Maharashtra), and Bengaluru, they have automated material processing systems (Karnataka).

Our facility personnel can be more productive and reduce errors with this automation, which is paired with system-directed floor operations, path expectation techniques, and machine-vision guided truck loading solutions.

Data Intelligence

To assist real-time operational decision making, they collect, organise, store, and evaluate massive amounts of transaction and environmental data.

They’ve acquired participant, product, geographical, and network data for over 1 billion orders and over 30 billion shipping lifecycle events points since their start.

They’ve employed machine learning extensively to develop a variety of skills, such as intelligent geo-location, network design, route optimization, load aggregation, ETA prediction, product identification, and fraud detection, that allow them to carry out operations efficiently and precisely.

Services

They offer express parcel delivery, heavy goods delivery, PTL freight, TL freight, warehousing, supply chain solutions, cross-border express and freight services, and distribution network software.

They also value added assistance like ecommerce return facilities, payment collection and processing, installation and arrangement services, and fraud detection.

Market outlook

According to the RedSeer Report, which they commissioned and paid for entirely in connection with the Offer, the Indian logistics market has a large addressable potential, with direct logistics spending of US$216.0 billion in Fiscal 2020 and set to grow to US$365.0 billion by Fiscal 2026 at a CAGR of 9.1%.

Substantial underlying economic growth, a favourable regulatory environment, the expansion of local manufacturing, the rapid rise of the digital economy, and improvements in India’s transportation infrastructure will all contribute to this progress.

Indirect logistics spending in India is expected to reach US$174.0 billion in Fiscal 2020.

Delhivery IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Delhivery IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
11 May 2022	1
12 May 2022	2
13 May 2022	3

Management

Their talented team has led the way in service excellence and industry-first innovations, allowing them to quickly establish market leadership.

Their workforce hails from a variety of industries, including technology, e-commerce, manufacturing, telecommunications, management consulting, financial services, and the armed forces, among others, with different backgrounds in engineering, technology, logistics, R&D, and design.

Principal Shareholders

• SVF Doorbell (Cayman) Ltd

Principal Shareholders’s Holding

Pre Issue Share Holding	15%
Post Issue Share Holding

Delhivery IPO Prospectus