Delhivery IPO: The initial public offering (IPO) of logistics firm Dehivery Limited saw a good subscription rate on its closing day, as opposed to the first two days of bidding where it was subscribed only 23 per cent. As of Day 3 of bidding, the Delhivery IPO saw a subscription of 1.63 times against the shares on offer, which was mainly due to a superb response by Qualified Institutional Buyers (QIB). The share allotment for the 5,235 crore Delhivery IPO has already been done two days back, and investors who won the bids are likely to see the credit to their demat accounts by Monday, May 23.
Delhivery IPO GMP Today
According to grey market observers, Delhivery IPO GMP (grey market premium) today is minus Rs 5, which is unchanged from its yesterday’s grey market premium. Market observers said that Delhivery IPO GMP today is minus Rs 5, which means the grey market is expecting that Delhivery IPO listing would be around Rs 482 ( Rs 487 – Rs 5), which is around 1 per cent lower than the upper end of the Delhivery price of Rs 487 per equity share
However, as per market experts, GMP of an IPO is not a reliable source as it is an unregulated and unofficial data. So, those who follow GMP are advised to go through the financials of the company as well because balance sheet of the company will give better picture about the company’s fundamentals.
What Experts Say on Delhivery IPO Listing Gains
Market analysts said that given the expensive valuations of the Delhivery IPO, and the unfavourable market conditions, the issue might list at a discount on NSE and BSE.
“The IPO of Delhivery got a low-spirited response from Investors. However, the issue sailed on backing of QIB investors subscription. The company has posted robust revenue growth but losses too have increased in similar fashion which made investors wary. Expensive Valuations & Unsupportive market conditions may dampen the listing. The IPO may list around the issue price and if the market conditions deteriorates, we may even see a discount listing ahead,” said Abhay Doshi, founder at UnlistedArena.com, dealing in Pre-IPO and unlisted shares.
Delhivery IPO Financials
Delhivery has not ever reported a profit, as per its share-sale prospectus. The company made a loss of Rs 891.14 crore for the nine months ended December 2021 and posted a Rs 415.7 crore loss in FY21. Revenue was Rs 4,911 crore in the nine months ended December and Rs 3,838 crore in FY21. It reported a negative free cash flow of Rs 246 crore in FY21 versus Rs 848 crore in FY20. Freight, handling and servicing costs rose to Rs 3,480 crore in the first nine month of FY22 from Rs 2,026 crore in FY21.
The Delhivery IPO opened on may 11 and closed on May 13. The Delhivery IPO is expected to list at the bourses on May 24, Monday. The public issue will list on both NSE and BSE.