Delhivery files papers to raise Rs 7,460 crore through IPO

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Delhivery has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (Sebi) to raise Rs 7,460 crore through an initial public offering (IPO). According to the draft red rerring prospectus (DRHP), the IPO comprises fresh issuance of equity shares worth Rs 5,000 crore and an offer for sale (OFS) component of Rs 2,460 crore by existing shareholders.

Kotak Mahindra one of the front runners in the issue

Deli CMF PTE Ltd will sell shares worth Rs 400 crore, CA Swift Investments will sell shares to the tune of Rs 920 crore, SVF Doorbell (Cayman) Ltd will sell shares worth Rs 750 crore and Times Internet Ltd will divest shares worth Rs 330 crore, as a part of the OFS.

Adding to that, Mohit Tandon and Suraj Saharan will be selling Rs 14 crore and Rs 40 crore worth of shares respectively, while Kapil Bharati will offload shares worth Rs 14 crore.

The proceeds from the fresh issue will be utilised towards funding organic and inorganic growth initiatives through acquisitions and other strategic initiatives and for general corporate purposes. As of June 30, 2021, the e-commerce logistics company operate a pan-India network and provide services in 17,045 Postal Index Number (PIN) codes.

It provides supply chain solutions to a diverse base of 21,342 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across various verticals like FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing, in the three months ending June 30, 2021.

Kotak Mahindra Capital, BofA Securities India, Morgan Stanley India Company and Citigroup Global Markets India are the front runners to the issue.

Delhivery in May, announced that it raised $275 million about Rs 1,995 crore in a primary funding round, led by Fidelity Management and Research Company. The company’s valuation was expected to rise over $3 billion, with the available capital.