Delhivery IPO GMP, Subscription Status, Other Details; Should You Invest on Last Day?

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Delhivery IPO: The initial public offering (IPO) of leading logistics firm Delhivery has been receiving muted response so far. As of Day 1, the issue got subscribed 21 per cent, while the same was subscribed just 23 per cent as of the second day of bidding. This means that as of Day 2, the Delhivery IPO received bids for 1,45,01,730 shares against 6,25,41,023 shares up on sale. The Delhivery IPO opened for subscription on Wednesday, May 11, and will close on Friday, May 13, after three days of bidding. The primary work of the company includes logistics services. Delhivery offers express parcel delivery, heavy goods delivery, warehousing and payment collection among other things.

The Delhivery IPO, which is the second biggest for Dalal Street in calendar year 2022 (CY22) after LIC, expects to raise Rs 5,235 crore from the maiden offer. The price band for the Delhivery IPO has been fixed at Rs 462 to Rs 487 per equity share. The IPO consists of a fresh issue worth Rs 4,000 crore, and Offer for Sale of Rs 1,235 crore. The issue is expected to list on May 24 on both NSE and BSE.

Delhivery IPO GMP Today

With the muted response from investors, the unlisted shares of Delhivery IPO are also not doing well at the grey market. The Delhivery IPO GMP today is Rs 2, as per market observers. This means that at the upper end of the price band, the Delhivery shares are expected to list at Rs 489. The Delhivery IPO will close today

However, as per market experts, GMP of an IPO is not a reliable source as it is an unregulated and unofficial data. So, those who follow GMP are advised to go through the financials of the company as well because balance sheet of the company will give better picture about the company’s fundamentals.

Delhivery IPO Subscription Status

As of Day 2 of its opening on Thursday, the Delhivery IPO received muted response from bidders who put up bids for 1,45,01,730 shares against 6,25,41,023 shares up on sale. The issue was booked only 23 per cent on Day 2, with non-institutional subscribers booking just 1 per cent of the portion reserved for them. Retail individual investors subscribed to 40 per cent of the shares allotted to them, while qualified institutional buyers put bids for 29 per cent of the portion reserved for their category.

Delhivery IPO: Should You Subscribe on Day 3?

Angel One | Rating Neutral

Based on annualized FY22 numbers, the IPO is priced at EV/Sales of 4.8x and Price to Book value of 5.2x at the upper price band of the IPO. For 9MFY22 company has reported an EBITDA loss of ₹232 crores and a Net loss of ₹891 crores. In the Indian markets, no other peer group has the same business model as Delhivery. The company has reported good revenue growth of 82% in 9MFY2022 and it is expected that the company may turn EBITDA positive by the FY2022 end. Given the expensive valuation, we are assigning a NEUTRAL recommendation to the Delhivery IPO.

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