Delhivery IPO | Review

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Delhivery, has come up with an initial public offer (IPO). It is likely to open on May 11-13, 2022 at Rs.462-487 a share. The IPO issue size is around Rs.5,235 crore. The minimum bid will be for 30 shares and in its multiples thereafter.

Overview

“Delhivery Limited” was incorporated on 22nd June 2011 in Delhi. It aims to build an operating system for commerce. Its business is guided by three operating principles: 1) People-centricity 2) Growth through partnership 3) Efficiency. The company provides a full range of logistics services, including express parcel delivery, heavy goods delivery, PTL freight, TL freight, warehousing, supply chain solutions, cross border express and freight services, and supply chain software, along with value-added services such as e-commerce return services, payment collection and processing, installation and assembly services and fraud detection. Delhivery is the fastest-growing fully-integrated logistics services player in India by revenue as of Fiscal 2021. It operates a pan-India network and provides our services in 17,488 PIN codes. The company serves a diverse base of 23,113 Active Customers across eCommerce, consumer durables, electronics, lifestyle, FMCG, industrial goods, automotive, healthcare, and retail.

Promoters

The company is a professionally managed company and does not have any promoters

Strength & Weakness

Strengths	Weaknesses
Rapid growth and extensive scale	History of losses and negative cash flows
Vast data intelligence capabilities	Rely on network partners and 3rd parties
Proprietary logistics operating system	Highly fragmented industry
Network design and engineering	Strong/intense competition
Strong & diverse customer base	All logistics facilities are leased
Highly qualified professional team	Macroeconomic & demographic risks
An integrated portfolio of logistics services	Certain contingent liabilities

Competitors

Blue Dart	Ecom Express	Gati	Ekart Logistics
Tiger Logistics	BlackBuck	XpressBees	Shreyas Shipping

Customers

Flipkart	Amazon	Snapdeal
eBay	Myntra	Healthkart

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2019	1,694.87	-1,783.30
31-Mar-2020	2,988.63	-268.93
31-Mar-2021	3,838.29	-415.74
31-Dec-2021	4,911.41	-891.14

Object of Issue

1) Funding organic growth initiatives

2) Funding inorganic growth through acquisitions and other strategic initiatives

3) General corporate purposes

Delhivery IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	30	Rs.14,610
Maximum	13	390	Rs.1,89,930

Delhivery IPO Details

IPO Opening Date	11th May 2022
IPO Closing Date	13th May 2022
Face Value	Rs.1 per Equity Share
IPO Price	Rs.462-487 per share
Market Lot	30 shares
Minimum Order Quantity	30 shares
Listing At	NSE, BSE
Issue Size	Up to Rs.5,235.00 Crore
QIB Shares Offered	75% of the offer
Retail Shares Offered	10% of the offer
NII/HNI Shares Offered	15% of the offer