Delhivery, an Indian delivery and e-commerce logistics company has filed a draft red herring prospectus with markets regulator SEBI for a public issue worth Rs 7,460 crore.
The offer may comprise a fresh issue of Rs 5,000 crore and an offer for sale worth Rs 2,460 crore. The company is seeking a valuation of around $5.5 billion, sources told CNBC-TV18.
The shareholders offloading shares via the IPO include China Momentum Fund (Rs 400 crore), Carlyle Group (Rs 920 crore), Softbank Vision Fund (Rs 750 crore), and Times Internet (Rs 330 crore).
Delhivery is a domestic logistics giant, backed by Softbank, Tiger Global Management and Carlyle. It earlier signed an agreement to acquire a 100 percent stake in Spoton Logistics, per a Moneycontrol report. Spoton Logistics is a rival express logistics player.
The company plans to use proceeds from the IPO to fund its organic growth initiatives that will use up to Rs 2,500 crore. It plans to also invest in its inorganic growth through acquisitions and other strategic initiatives, for which it plans to use Rs 1,250 crore.
The company has said in the prospectus that it does it will continue to see losses in the near future, much like other internet companies hitting the market. The company has seen its losses shoot up by over 50 percent in the financial year 2021 to Rs 415 crore. At the same time, its income rose by over 28 percent to Rs 3,838 crore.
It said about five customers contributed to 40 percent of its FY21 revenues and that the majority comes from the e-commerce sector.
Delhivery competes with the likes of DHL's Blue Dart Express and DTDC India in the domestic logistics sector. The sector contributes about 14 percent to India's GDP.
(Edited by : Yashi Gupta)
First Published: IST