Ahead of the Initial Public Offering (IPO) subscription opening, unicorn logistics platform Delhivery on Tuesday raised Rs 2,347 crore from 64 anchor investors including private equity players Tiger Global Management, Steadview Capital, Bay Capital and Singaporean wealth funds Government of Singapore (GIC), Monetary Authority of Singapore.
Softbank-backed Delhivery Limited has decided to allocate 4,81,87,860 (4.81 crore) equity shares to anchor investors at Rs 487 apiece, aggregating the transaction size to Rs 2,346.74 crore, according to information on the BSE.
Existing investors Tiger Global Investments Fund, Alpha Wave Ventures (formerly Falcon Edge), GIC and Steadview Capital which will not be selling shares in the IPO, picked up additional shares.
Tiger Global Investments Fund, which owns around 5.5% stake, picked up further 2.28% stake committing Rs 53.5 crore. Both Steadview Capital Master Fund and Bay Capital will also pick up 2.28% individually infusing Rs 53.5 crore each.
Goldman Sachs Fund invested Rs 116.5 crore to hold 4.97% stake in the anchor allotment.
GIC infused Rs 91.7 crore to grab additional 2.99% holding and Alpha Wave invested Rs 23 crore to get additional 0.98% stake.
Delhivery, which counts Canadian Pension Plan Investment Board (CPPIB) as its investor, also raised Rs 91.7 crore from Canadian Pension Fund OMERS.
Other anchor investors who participated include IIFL, AIA Singapore, Amansa Holdings, Aberdeen New India Investment Trust Plc, The Master Trust Bank of Japan, Fidelity, Morgan Stanley Asia (Singapore) Pte, Societe Generale and Segantii India Mauritius.
SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Mirae MF, ICICI Prudential MF, Invesco MF and Nippon India too participated in the anchor round.
Delhivery will be the first major IPO after a brief lull in activity as companies delayed or scrapped plans to go public amid the geopolitical tensions after the Russian invasion of Ukraine and to avoid a clash with LIC’s Rs 21,000 crore share, India’s largest initial share sale. Delhivery had filed for the IPO in November.
For retail investors, the Delhivery IPO worth Rs 5,235 crore will open for subscription on 11 May 2022 i.e. today for three days until 13 May 2022.
The public issue, which was earlier targeted at raising Rs 7,460 crore, 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.
Largest shareholder SoftBank and Carlyle as well as Delhivery's co-founders will divest their shareholding in the logistics company under OFS.
CA Swift Investments, an entity of Carlyle Group, will sell shares to the tune of Rs 454 crore; 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 firm Fosun's China Momentum Fund, L.P. will sell shares worth Rs 200 crore and Times Internet will sell shares worth Rs 165 crore.
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.
The supply chain company will deploy fresh capital raised towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives and for general corporate purposes.
Delhivery was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati as a hyperlocal express logistics services firm. It became a unicorn touching $1 billion valuation, in 2019.