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MUMBAI: Private equity funds such as SoftBank and Carlyle may reduce their offer for sale (OFS) portion anywhere between 30-40% during the initial public offering (IPO) of Delhivery, India’s largest fully integrated logistics company, according to bankers. The reduction in the OFS size is expected to be from Rs 2,460 crore earlier to around Rs 1,300-1,400 crore. Sources say that the company is expected to file the red herring prospectus with SEBI this week.

Global private equity firm Carlyle may reduce its offer for sale portion to around Rs 500 crore from Rs 920 crore earlier, while SoftBank may reduce it to Rs 400 crore from Rs 750 earlier, according to bankers.

Delhivery plans to open the issue next week after a positive response to recent IPOs of Rainbow and Campus, which made investment bankers confident of generating a good response, a source knowing the development said.

The Gurgaon-based startup held a board meeting on Saturday to finalise its IPO. The board cleared the plan, and the offer is likely to launch its issue next week after the LIC IPO subscription window closes on May 9.

Kotak Mahindra Capital, Morgan Stanley, BofA Securities, and Citigroup are the issues’ bankers.

With a 22.78% stake, SoftBank Holding is the largest shareholder in the company, while Nexus Ventures and CI Swift Holdings (Carlyle) hold a 9.23% and 7.42% stake. Kapil Bharati holds 1.11%, Mohit Tandon owns 1.88%, and Suraj Saharan has a 1.79% stake.

As a part of its plan to go public, the logistics major appointed three industry veterans as independent directors. This includes Kalpana Morparia, the former chairman of JP Morgan South and Southeast Asia, Romesh Sobti, former CEO and managing director of Indusind Bank; and Saugata Gupta, CEO and managing director of Marico.

For the fiscal year 2021, its total income stood at Rs 3,838.29 crore against Rs 2,988.63 crore a year ago. Net loss for the period widened to Rs 415.74 crore from Rs 268.93 crore in the previous year.

According to the DRHP, it claims to be the largest and fastest-growing fully integrated logistics player in India by revenue as of Fiscal 2021. Delhivery provides a full range of logistics services, including express parcel delivery, heavy goods delivery, truckload freight, warehousing, and supply chain solutions. The company achieved Unicorn status two years back.


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