Supply chain company Delhivery on Thursday said it has set a price band of Rs 462-487 a share for its Rs 5,235-crore initial public offering (IPO), which will open for subscription on May 11.
At the upper end of the price band, the company is valued at Rs 35,284 crore, Delhivery announced in a virtual press conference.
The three-day initial share sale will conclude on May 13 and the bidding for anchor investors will open on May 10.
The size of the IPO has been cut to Rs 5,235 crore from Rs 7,460 crore planned earlier. The public issue now comprises fresh issuance of equity shares worth Rs 4,000 crore and an Offer for Sale (OFS) component of Rs 1,235 crore by existing shareholders.
Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery's co-founders will divest their shareholding in the logistics company.
CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of Rs 454 crore while SVF Doorbell (Cayman) Ltd, an arm of Softbank Group, will offload shares worth Rs 365 crore.
Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity fund China Momentum Fund, L.P. will sell shares worth Rs 200 crore and Times Internet will offload shares worth Rs 165 crore.
In addition, Delhivery's co-founders -- Kapil Bharati, Mohit Tandon, and Suraj Saharan -- will sell shares worth Rs 5 crore, Rs 40 crore, and Rs 6 crore, respectively.
At present, SoftBank owns a 22.78 percent stake, Carlyle has a 7.42 percent stake, Bharti owns 1.11 percent, Tondon has 1.88 percent and Saharan holds a 1.79 percent stake in the company.
Proceeds of the fresh issue to the tune of Rs 2,000 crore will be used towards funding organic growth initiatives and Rs 1,000 crore for inorganic growth through acquisitions and other strategic initiatives, besides, money will be used for general corporate purposes.
The company said that 75 percent of the issue has been reserved for qualified institutional investors, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors. In addition, the company has set aside shares worth Rs 20 crore for eligible employees, who will get a discount of Rs 25 per equity stock during the bidding process.
Investors can bid for a minimum of 30 equity shares and in multiples thereof.
Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, warehousing, supply chain solutions, cross-border express and freight services, and supply chain software, along with value added services such as e-commerce return services, payment collection, and processing, installation and assembly services.
The e-commerce logistics company operates a pan-India network and provides services in 17,045 postal index number (PIN) codes.
The company's express parcel delivery network, which serviced 17,488 PIN codes in the nine months ended December 2021, covered 90.61 percent of the 19,300 PIN codes in India.
The company provides supply chain solutions to a diverse base of 23,113 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers, and enterprises and SMEs across several verticals such as FMCG, and consumer durables, consumer electronics, lifestyle, retail, automotive, and manufacturing.
The Gurugram-based company said about five customers contributed to more than 40 percent of its revenues in FY21.
Speaking about the company's key business strategies, Delhivery's Executive Director and Chief Business Officer said the company will focus on expanding investment in infrastructure and network while continuing to build scale in existing business lines, deepen the customer relationships, enhance the technology capabilities, expand into high growth international markets similar to India, and pursue strategic alliances and select acquisitions and investment opportunities.
Kotak Mahindra Capital Company, BofA Securities India, Morgan Stanley India Company, and Citigroup Global Markets India are the book running lead managers to the issue. The equity shares of the supply chain company will be listed on the stock exchanges -- BSE and NSE -- on May 24.
In August, Delhivery acquired Spoton to further scale their partial truckload (PTL) freight services business.
(With PTI inputs)