Delhivery IPO: Softbank, Carlyle Group to cash out, co says losses to continue
Logistics startup Delhivery has filed IPO papers with SEBI for a Rs 7,460 crore initial public offer (IPO). It plans to raise Rs 5,000 crore, with investors like Softbank, Carlyle Group cashing out. The company says it will continue to see losses in the near future, much like other internet companies.
Logistics startup Delhivery has filed its prospectus for a Rs 7,460 crore initial public offer (IPO), in which it looks to raise Rs 5,000 crore through fresh issue of shares and Rs 2,460 crore through an offer for sale (OFS).
Selling shareholders
The selling shareholders in the OFS include China Momentum Fund (Deli CMF) - Rs 400 crore; Carlyle Group (CA Swift) - Rs 920 crore; Softbank Vision Fund (SVF Doorbell) - Rs 750 crore; Times Internet - Rs 330 crore.
Objectives of issue
The company has listed two main objects of the offer in the prospectus, which include funding organic growth initiatives (Rs 2500 crore) and funding inorganic growth through acquisitions and other strategic initiatives (Rs 1250 crore).
Financials
The company has seen its losses shoot up by over 50 percent in Fy21 to Rs 415 crore, even while total income increased by 28 percent to Rs 3838 crore.
The company said about 40 percent of its revenues in FY21, which is about Rs 1556 crore, came from the top five customers. The company said the majority of its revenue comes from the e-commerce sector.
Losses to continue
Much like several other internet companies that are hitting the public markets, Delhivery, too, has said it will continue to see losses in the near future.
“We have a history of losses and negative cash flows from operating, investing and financing activities and we may continue to experience losses and negative cash flows in the future as we anticipate increased expenses in the future,” the company said in the prospectus.
(Edited by : Yashi Gupta)
First Published: Nov 2, 2021 2:47 PM IST
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