SoftBank-backed logistics firm Delhivery aims for over US$5.5 billion valuation in India IPO
BENGALURU :Indian logistics firm Delhivery is seeking a valuation of more than US$5.5 billion, a source familiar with the matter told Reuters, as the SoftBank-backed company filed for an initial public offering of up to 74.6 billion rupees (US$997.33 million).
The filing comes on the heels of several public offerings this year, such as TPG-backed Nykaa, SoftBank-backed Paytm and online insurance aggregator Policybazaar, as abundant liquidity and strong retail participation pushed the Indian stock market to record levels.
Delhivery, which is also a third-party logistics provider for Amazon.com Inc, competes with DHL's unit Blue Dart Express Ltd and DTDC India in a sector that had a direct spend of US$216 billion in fiscal 2020 and is expected to grow to US$365 billion by fiscal 2026.
The company's IPO will consist of a fresh issue of shares worth 50 billion rupees and an offer for sale of shares worth 24.6 billion rupees, according to a copy of Delhivery's draft herring prospectus dated Nov. 1.
Private equity firm Carlyle Group Inc, which has a 7.42per cent stake in the company is selling shares worth 9.2 billion rupees in the IPO, while majority shareholder SoftBank Group Corp, with a 22.8per cent stake, is looking to offload shares worth 7.5 billion rupees.
Delhivery's loss widened to 4.16 billion rupees for the fiscal year ended March 31, 2021, from 2.69 billion rupees a year earlier, while revenue from contracts with customers rose 31per cent to 36.47 billion rupees.
Kotak Mahindra Capital, Morgan Stanley, BofA Securities and Citigroup are the bookrunning lead managers for the IPO.
Fashion and cosmetics e-commerce platform Nykaa on Monday became the latest start-up to draw strong investor interest for its public offering, with bids oversubscribed by nearly 82 times.
(US$1 = 74.8000 Indian rupees)
(Reporting by Chandini Monnappa and Rama Venkat in Bengaluru; Editing by Subhranshu Sahu and Shounak Dasgupta)