How Much Listing Gains Can you Expect?

Initial subscription for delivery: The initial public offering (IPO) for logistics company Dehivery Limited saw a good subscription rate on closing day, in contrast to the first two days of tender where it was only 23 per cent oversubscribed. As of the third day of bidding, Delhivery’s IPO had seen an oversubscription of 1.63 times against the shares offered, mainly due to the impressive response from qualified institutional buyers (QIB). Delhivery’s IPO stake of Rs 5,235 crore was already allocated two days ago and investors who won bids are likely to see credit for their demo accounts by Monday 23 May.

Delhivery IPO GMP Today

According to gray market watchers, today’s Delhivery IPO GMP (gray market premium) is minus Rs 5, which is unchanged from yesterday’s gray market premium. Market watchers said today’s Delhivery IPO GMP is minus 5 rupees, which means the gray market expects the Delhivery IPO listing to be in the region of 482 rupees (487 rupees – 5 rupees), which is about 1 per cent lower than the higher end of the delivery price 487 rupees. per share of equity

However, according to market experts, IPO GMP is not a reliable source because it is unstructured and unofficial data. Therefore, those who follow GMP are advised to look at the company’s financial statements as well because the company’s balance sheet will give a better picture of the company’s fundamentals.

What Experts Say About Delhivery’s IPO List Gains

Market analysts said that due to the exorbitant valuations of the Delhivery IPO, and unfavorable market conditions, the issue may be listed at a discount on NSE and BSE.

Delhivery’s initial public offering got a low response from investors. However, the issue has moved to underwriting investors support from the bank. The company had solid revenue growth but losses also increased in a similar way which made investors nervous. Exorbitant valuations and unsupportive market conditions may weaken the listing. “The IPO may be listed around the issue price, and if market conditions deteriorate, we may see a discount listing in the future,” said Abhay Doshi, founder of UnlistedArena.com, which deals in pre-IPO and unlisted shares.

Financial statements of the public offering for delivery

Delhivery did not report any profit at all, according to the prospectus for the share sale. The company incurred a loss of Rs.891.14 crore for the nine months ending December 2021 and recorded a loss of Rs.415.7 crore in FY 21. Revenue was Rs.4,911 crore in the nine months ended December and Rs.3,838 crore in FY21. Reported negative free cash flow of Rs.246 crore in FY21 as against Rs.848 crore in FY2020. Shipping, handling and service costs increased to Rs.3,480 crore in the first nine months of FY22 from Rs.2026 crore in FY21.

The Delhivery IPO opened on May 11 and closed on May 13. The public version will be listed in both the NSE and BSE.

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