Delhivery shares made a tepid debut on the stock exchanges on Tuesday. Shares of the supply chain company started trading on BSE at Rs 493 per share, up 1.2% from its IPO price of Rs 487 per share. While at NSE, it began trading at Rs 495.2 apiece, up 1.7 per cent. At listing, Delhivery market capitalisation stood at Rs 35,718.01 crore. Benchmark indices BSE Sensex and Nifty 50 were trading flat to negative in today’s session. Delhivery’s Rs 5,235-crore public issue was subscribed 1.63 times. On successful listing on stock exchanges, Delhivery has joined the likes of already listed companies Blue Dart Express, TCI Express, and Mahindra Logistics.
The company offers five types of transportation services- Express Parcel services, Part Truck Load services, Truck Load services, Supply chain services, and Cross Border services. The company has a total client base of 23,113 majorities which includes e-commerce marketplaces, and direct-to-consumer e-tailers. The company focuses on the B2C business model but recently the company has also launched C2C services. Analysts at Angel One said that based on annualised FY22 numbers, the IPO was priced at EV/Sales of 4.8x and Price to Book value of 5.2x at the upper price band of the IPO.
Yes Securities, in an IPO report, said that Delhivery is the largest and fastest growing 3PL express parcel delivery player. The company has a unified infrastructure network; proprietary technology stack and capabilities; vast amounts of data intelligence and R&D, and an experienced professional management team. It has a strong relationship with a diversified customer base.
Delhivery provides a full-range of logistics services, including express parcel, ecommerce delivery and heavy goods delivery. It has built a nationwide network with a presence in every state, servicing 17,488 pin codes. It has a strong network infrastructure, which includes 122 gateways, 21 automated sort centers and 93 fulfillment centers. For 9MFY22 the company has reported an EBITDA loss of Rs 232 crore and a net loss of Rs 891 crore.