Delhivery IPO Day 2 | Total subscription at 23%, retail portion booked 40%, employee quota 12%

Delhivery

The initial public offering of logistics services provider Delhivery was subscribed 23 percent against IPO size of 6.25 crore shares on the second day of bidding.

The offer size has been reduced to 6.25 from 10.75 crore shares as the company has raised Rs 2,346.7 crore from 64 anchor investors including Baillie Gifford Pacific Fund, Schorder International, AIA Singapore, Amansa Holdings, Aberdeen, Goldman Sachs, and Singapore.

Retail investors bid for 40 percent of the shares reserved for them, while employees booked 12 percent of their portion.

The company has reserved shares worth Rs 20 crore for employees who will get shares at a Rs 25 discount to the final offer price. The price band for the offer, which closes on May 13, has been fixed at Rs 462-487 per share.

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Non-institutional investors bid for 1 percent shares of the allotted quota while qualified institutional buyers have subscribed 29 percent.

Of the total issue size, 75 percent is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail investors.

Delhivery is planning to mobilise Rs 5,235 crore through its public issue that comprises a fresh issue of Rs 4,000 crore and an offer for sale of Rs 1,235 crore by shareholders.

Also read - Delhivery IPO opens today: All you need to know

The net fresh issue proceeds will be utilised for funding organic growth initiatives, and inorganic growth through acquisitions and other strategic initiatives, besides general corporate purposes.

YES Securities has given a subscribe rating to Delhivery IPO from a long term perspective.

The brokerage believes Delhivery's asset light business model, engineering and automation along with new age technologies will help the company.