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As Delhivery is set to launch IPO today, here's what grey market suggests

As Delhivery is set to launch IPO today, here's what grey market suggests

By Sandeep Singh   IST (Updated)


Delhivery shares have commanded a premium of Rs 7-35 in the run-up to the IPO, which opens for subscription on May 11 and ends on May 13.

Logistics company Delhivery — which is set to launch an up to Rs 5,235-crore initial public offering (IPO) on Wednesday — saw a decline in premium in the grey market ahead of it. Dealers said Delhivery shares changed hands at a premium of Rs 2-4 in the grey market on Wednesday, as against a premium of as much as Rs 30 in the past few days.
Grey market is an unofficial market for unlisted securities.
DateGMP (in rupees)

May 7

May 625
May 525
May 435
May 330
Source: IPO Watch
Delhivery's IPO is a combination of fresh issuance of shares, worth up to Rs 4,000 crore, and an offer for sale (OFS), worth Rs 1,235 crore. The company aims to utilise the proceeds from the issue to fund growth initiatives and for general corporate purposes.
Potential investors will be able to bid for Delhivery shares under the IPO in a price band of Rs 462-487 in multiples of 30. The subscription window for the IPO will be open from May 11 to May 13.
The Delhivery stock is likely to be listed on exchanges BSE and NSE on May 24.
"Delhivery is a good company but after seeing recent unicorn listings, we feel investors are not positive on a loss-making company," Dinesh Gupta, Co-Founder of UnlistedZone — a firm that deals in unlisted shares, told CNBCTV18.com.
According to Abhay Doshi, Co-Founder of Unlisted Arena —a portal that tracks grey markets and deals in unlisted securities, the Delhivery issue is priced at almost 5.5 times its market capitalisation-to-revenue ratio based on post-fresh issue and annualised metrics of the April-December 2021 period.
"The valuations seems to be in-line with peers but the company being a loss-making one makes the issue look expensive. Dicey market sentiments and investors' concerns about loss-making startups may dampen the interest," he told CNBCTV18.com.
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