Delhivery IPO Listing Delhivery IPO debut expected tomorrow, grey market indicates discounted listing
Mumbai/IBNS: The Indian logistics and supply chain enterprise Delhivery's shares expected to hit Dalal Street on Tuesday.
The Gurgaon-based company's public offering worth Rs 5,235 crore makes it the first major IPO following LIC's IPO.
On the final day of subscription, the IPO got oversubscribed by 1.63 times, according to media reports.
Against 6,25,41,023 shares on offer, Delhivery received bids for 10,17,04,080 on May 13, final day of subscription, according to National Stock Exchange (NSE) data.
Qualified institutional buyers' portion oversubscribed 2.66 times subscription, retail individual investors subscribed 57 percent and non-institutional investors 30 percent of their respective quota, as per media reports.
Coming to the grey market sentiments, the IPO is expected to have a frail debut due to the present high volatility of stock markets, Zee News reported.
The grey market premium (GMP) as of May 23 was Rs 5, signalling the IPO listing to be around Rs 482, according to media reports.
Regarding the financials of Delhivery, the firm has not once reported a profit, as per its share-sale prospectus, reported News18.
Delhivery had reported a loss of Rs 891.14 crore for the nine months ended December 2021 and registered Rs 416 crore loss in FY21.
The revenue in the nine months ended December was Rs 4,911 crore; the revenue in FY21 was Rs 3,838 crore.
In FY21, it reported a negative free cash flow of Rs 246 crore as against Rs 848 crore in FY20.
Meanwhile, the cost of handling, freight, handling and servicing went upto to Rs 3,480 crore in the first nine months of FY22 from Rs 2,026 crore in FY21, according to media reports.
Vice President & Head of Research at Share India Ravi Singh told News18, “Delivery IPO has poor financials so far and the valuations of the company is expensive as well. Owing to low response by retail investors and negative market sentiments, Delhivery IPO may list at a discount price on listing day."
Delhivery's IPO had opened on May 10 and ended on May 13.
The public will be listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
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