Logistics startup Delhivery makes weak stock market debut

Delhivery's weak debut was on expected lines given the subdued sentiment on the stock markets, and its share value remained at the same level of its listing price.
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Logistics company Delhivery made a weak debut on the Bombay Stork Exchange (BSE) and the National Stock Exchange (NSE) on Tuesday. Its share price rose by just one percent and was on expected lines, given the overall subdued macro environment.

Delhivery shares debuted at Rs 493 as against its listing price of Rs 487 on the NSE in the opening trade. However, it later rose by 3 percent to touch Rs 503.05 at 10:10 am.

The broader stock market showed no major uptick in the opening trade with both Sensex and Nifty on decline mode.

The logistics company came out with its Rs 5,235 crore initial public offering (IPO), which was subscribed 1.63 times during the three day subscription period between May 11 and 13. The subscription was relatively a poor response as it was only the qualified institutional bidders who had over-subscribed, while retail, HNIs, and employees remained undersubscribed.

The public issue of Delhivery comprised fresh issue of up to Rs 4,000 crore and an offer for sale (OFS) of up to Rs 1,235 crore. Under the OFS, investors like Carlyle Group, SoftBank, and Delhivery co-founders divested a part of their stake.

Delhivery raised Rs 2,347 crore from 64 anchor investors who were allocated 48 million shares at a price of Rs 487 per share with participation from marquee financial services companies from domestic and overseas.

The IPO of Delhivery and its listing seems like a full circle that has come to the Indian startup ecosystem as just about 10 months ago there was exuberance all round, with four leading companies receiving a strong market response.

Last year, Zomato, Nykaa, Policybazaar, Paytm, and Freshworks made their stock market debut, and all of them saw strong subscription from investors and made handsome gains on the listing day. However, Paytm was an excepition, as its share price declined on the listing day.

Now, there is a complete change in the macro economic environment and this has had an impact on the share price of the startups that went public last year. Except for Nykaa, all other companies are trading below their listing price.

Edited by Megha Reddy