Delhivery has cut by nearly a third the size of its initial public offering that'll open on the Indian stock exchanges on May 11.
The three-day Delhivery IPO will see shares being sold in a price band of Rs 462-487 apiece to raise as much as Rs 5,235 crore. The logistics startup had planned to raise Rs 7,460 crore earlier. Investors can bid for a minimum of 30 equity shares and in multiples thereof. The offering now comprises fresh stock worth Rs 4,000 crore and an offer for sale component of Rs 1,235 crore by existing shareholders.
Investors Carlyle Group and SoftBank Group Corp., as well as Delhivery's co-founders, will divest their shareholding via the offer for sale. CA Swift Investments, an entity of Carlyle Group, will sell shares worth Rs 454 crore while SVF Doorbell (Cayman) Ltd., an arm of Softbank Group, will offload shares worth Rs 365 crore. Deli CMF Pte Ltd., a wholly-owned subsidiary of private equity fund China Momentum Fund LP will sell shares worth Rs 200 crore, and Times Internet will offload shares worth Rs 165 crore.
In addition, Delhivery's co-founders -- Kapil Bharati, Mohit Tandon and Suraj Saharan -- will sell shares worth Rs 5 crore, Rs 40 crore and Rs 6 crore, respectively.
Proceeds of the Delhivery IPO will be used for funding organic growth initiatives, inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes.
About 75% of the issue is reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors.
The e-commerce logistics company operates a pan-India network and provides services in 17,045 postal index number (PIN) codes. It provides supply chain solutions to a diverse base of 21,342 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and small businesses across several verticals like fast-moving consumer goods, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing.
Kotak Mahindra Capital Co., BofA Securities India, Morgan Stanley India Co. and Citigroup Global Markets India are the book-running lead managers to the issue.
In May, Delhivery announced that it has raised $275 million (about Rs 2,000 crore) in a primary funding round led by Fidelity. With this capital raise, Delhivery's valuation was expected to rise to over $3 billion.
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