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Market regulator SEBI has approved SoftBank Group-backed logistics firm Delhivery Limited’s ₹ 7,460 crore ($ 997.3 million) initial public offering (IPO). Indications are that the IPO will hit the market next month.
The observation letter of SEBI got issued on January 13. It maybe recalled that the draft red herring prospectus (DRHP) of Delhivery was filed with SEBI in early November 2021.
This proposed IPO would comprise fresh issue of ₹ 5,000 crore and offer for sale of ₹ 2,460 crore by certain existing shareholders.
This Gurugram-based startup, which was founded in 2011, clocked a revenue of ₹ 3,646 crore in 2020-21.
According to a RedSeer report, Delhivery was the largest and fastest growing fully-integrated logistics services player in India by revenue as of fiscal 2021.
The report had noted that Indian logistics market presents a large addressable opportunity with direct spends on logistics of $ 216 billion in fiscal 2020 and is expected to grow to about $ 365 billion by 2026 at a CAGR of 9.1 per cent. Within the logistics industry, the express parcel delivery segment, which is highly organised, is expected to grow at CAGR of 28-32 per cent to $ 10-12 billion by fiscal 2026.
Kotak Mahindra Capital, Morgan Stanley India, BOFA Securities and Citigroup are the bookrunning lead managers for the IPO.
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