Delhivery IPO_Know all the details here
Heard of Delhivery before?
Yeah! That’s right, we have often seen Delhivery delivery man at our door with product we ordered online (reaching out to us in least possible time) , especially during COVID, when we preferred to do online shopping more through e-commerce sites.
Delhivery, India’s biggest logistics chain service provider, us coming up with an IPO.
Let’s look at few details before making decision to subscribe or avoid it.
About the company:
Delhivery belongs to Logistics and Supply chain industry. It provides wide range of logistics services including delivery of express parcels and heavy goods, supply chain solutions, warehousing, TL freight and much more.
The company offers exclusive services which bridges some of the important hindrances between e-commerce sites and consumers such as payment collection and installation, return services, and fraud detection.
The 80% of the company’s revenue comes from business-to-business clients.
Delhivery is the largest and fastest-growing fully integrated Logistics services player in India by revenue as of FY21.
What makes Delhivery stand out amongst competitors?
◇ Technology – Delhivery, as mentioned before, also is providing some value added services which was a barrier to growth of e-commerce sites before. Delhivery has invested much of its capital in developing smooth payment and processing features, tracking features for both consumers and businesses and fraud detection.
◇ Point-to-Point Strategy: Unlike other logistics services providers, Delhivery has its warehouses or hub at several points which ensures faster delivery.
About an IPO:
◇ IPO will open for subscription to public on 11th May, 2022 and will close on 13th May, 2022.
◇ The price band is fixed at ₹ 462 to ₹487.
◇ The lot size is 30 shares, which makes required minimum investment ₹14,610.
◇ One can subscribe for maximum 13 lots.
◇ Allotment will be made on 19th May and will be listed on NSE and BSE on 24th May, 2022.
◇ Valuation of company becomes approximately 35000 crores at upper price band.
◇For employees, the discount of ₹25 per share will be given.
GMP:
Shares of logistics and supply-chain startup Delhivery Ltd are down nearly 40 percent in the unlisted market from the peak of Rs 950 apiece in January ahead of its initial public offering (IPO). The stock is quoting at Rs 550-600 per share on thin trading volume.
Financials:
◇ Revenue as of F.Y. 2021 was almost 36 Bn.
◇ Revenue growth, from 2019 to 2021, was 48% CAGR.
◇ They have 21,342 active customers as of June 2021.
Below mentioned charts gives more details about PAT, assets and ratios.
Pros:
◇ Competitive Strength- Hardly any company can stand by Delhivery as of now.
◇ This market segment has reached its peak, so it can give good returns.
Cons:
◇ This industry saw major boom because of COVID, but we cannot be sure how will it react to further challenges.
◇ Not a very huge market, it has grown already, now it is not much expected to grow much further.
◇ Dependency on e-commerce sites like Amazon and myntra can prove to be hazardous if they choose to start their own distribution channel.
Overall, the company is in good health however one should do own research before investing.
Happy Learning and Investing!!!
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