Stocks

Delhivery, Venus Pipes and Tubes list at premium

BL Mumbai Bureau | | Updated on: May 24, 2022

Delhivery listed at a premium of 1.68 per cent over its issue price, while Venus Pipes and Tubes listed at 3.53 per cent premium on the NSE

Shares of Delhivery and Venus Pipes and Tubes made a positive debut on the bourses on Tuesday, listing at a premium against their respective issue prices.

Delhivery listed at a premium of 1.23 per cent on the BSE at ₹493, up ₹6 over its issue price of ₹487. The stock gained after a tepid listing, climbing to a high of ₹568.90 during the day. It closed at ₹537.25, up ₹50.25 or 10.32 per cent over the issue price. It recorded an intraday low of ₹474.00.

On the NSE, it listed at ₹495.20, up ₹8.20 or 1.68 per cent over its issue price. It closed at ₹536.25.

Venus Pipes and Tubes

Venus Pipes & Tubes listed at ₹335.00 on the BSE, up ₹9.00 or a 2.76 per cent premium over its issue price of ₹326.00. Post listing, it was locked in the 5 per cent upper circuit during the day. It closed at a high of ₹351.75, up ₹25.75 or 7.90 per cent over the issue price.

On the NSE, it listed at ₹337.50, up ₹11.50 over its issue price at a 3.53 per cent premium. It closed at ₹354.35

Delhivery had fixed the IPO price as ₹487, at the upper end of the price band ₹462-487. Venus Pipes fixed the IPO price at ₹326. It had fixed the price band for the IPO at ₹310-326.

Venus Pipes & Tubes Limited is a manufacturer and exporter of stainless steel pipes and tubes.

It had witnessed robust response from all categories of investors for its ₹165-crore IPO. While retail investors portion was subscribed by 19 times, quota for QIBs and NIIs saw a response of 12 times and 15.7 times respectively.

Ahead of the IPO opening, it had raised ₹49.62 crore from anchor investors such as Nippon India Small Cap Fund, Kotak Mahindra Life Insurance Company Ltd and India SME Investments - Fund I.

Delhivery IPO

Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery and warehousing.

Overall, the IPO of Delhivery was subscribed 1.63 times with Qualified Institutional Buyer (QIB) portion getting 2.66 times. The portions for non-institutional bidders (0.30 times) and retail investors (0.57 times) were under-subscribed.

The public issue of ₹5,235 crore had a fresh issue of up to ₹4,000 crore and an offer for sale of up to ₹1,235 crore.

Ahead of the IPO, the logistics major has garnered ₹2,346 crore from 64 anchor investors, including Goldman Sachs, Morgan Stanley, the Government of Singapore, Fidelity Investment Trust, Tiger Global, Invesco, SBI, ICICI Prudential, and HDFC.

Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The company’s tepid listing can be attributed to the current market conditions and the loss-making nature of the company. The company has a good track record of execution built on its proprietary technology and has scaled up significantly since its incorporation in 2011 to emerge as the largest fully-integrated logistics player in the country.”

“The runway of opportunity also appears good given India’s long-term growth prospects and the crucial role logistics plays when it comes to commerce. However, the logistics industry is extremely competitive and the company is yet to turn profitable,” Meena added.

Published on May 24, 2022
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