Delhivery IPO gets listed at Rs 495, then zooms ahead
Delhivery, one of India's popular logistics and courier companies, was listed on the stock market at a 1.68 % premium. The IPO application process was opened between May 11 to May 13. Prospective investors had an option to pay between the range of Rs 463 to Rs 487 per share. Since investors had to apply for lots of 30 shares, prospective investors had to shell Rs 14,610 for one lot.
Today, on May 24, the shares of Delhivery were listed at a price of Rs 495.20, which means a profit of 1.68%.
For those who are unfamiliar with the brand, Delhivery is an Indian logistics company that helps businesses (B2B) and individual customers (B2C and C2C) transport their goods across India and the world. It is one of the biggest IPOs that came up after the LIC IPO this year in India.
Delhivery mainly provides five types of services to function as a big brand in the supply chain management and logistics industry. You might have experienced Delhivery’s parcel delivery service when you ordered items from Amazon or Flipkart. You might have also seen Delhivery’s trucks passing by the road as it is also in the business of carrying freight.
1. PRICE MOVEMENT
The company became a unicorn in 2019 because of endless rounds of funding. As it went public on May 24, here is what the price movement has looked like:
- 10 am – Rs 495.20
- 11 am - Rs 524
- 12 pm - Rs 535
- 1 pm - Rs 555
- 2 pm - Rs 535
2. WHY THE FLAT LISTING?
As per Prashanth Tapse, who is the Vice President (Research) at Mehta Equities Ltd, Delhivery IPO saw a low subscription because investors feared Delhivery’s operational losses and were also uncomfortable with the aggressive IPO valuations.
3. WHAT TO DO WITH THIS NEXT?
Delhivery has a good track record of execution because of its proprietary technology and consistent revenue growth. But it is yet to turn profitable as the logistics industry is very competitive.
Before the company got listed, experts had mixed reactions to the IPO because of Delhivery’s hefty valuation and its high price range. While Yes Securities recommended a Yes to this IPO, Samco Securities and Marwadi Financial Services had recommended avoiding it altogether.
As per Santosh Meena, head of research, Swastika Investmart Ltd, new investors must wait and watch Delhivery's strategy and invest only after it creates concrete plans to turn profitable.