Delhivery IPO subscribed 21% on first day

NEW DELHI: On first day of its bidding, the initial public offering (IPO) of Delhivery received 21% subscription against the issue size of 6.25 cr shares. The offer size has been cut to 6.25 cr from 10.75 cr shares after the logistics services provider raised Rs 2,346.7 cr from 64 anchor investors including, Schorder International, AIA Singapore, Amansa Holdings, Aberdeen and Goldman Sachs. Delhivery is planning to raise Rs 5,235 cr via its public issue.  

As per data available with the BSE, retail investors bid for 30% of their quota, while employees booked only 6% of their portion. Non-institutional investors bid for 1% shares of the allotted quota while qualified institutional buyers subscribed 29%. The price band for the offer, which closes on May 13, has been fixed at Rs 462-487 a share.

Of the issue size, 75% is reserved for institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors. Analysts are divided over the issue as the firm remains a loss-making entity.  Investors have already lost billions in other loss-making entities such as Zomato and Paytm.