Thread by @Sandeepnirvan_

Initially incorporated as “SSN Logistics Private Limited”, a Delhi based private limited company has filed IPO with SEBI for fresh issuance of equity shares worth ₹5,000 Cr and an offer for sale (OFS) of ₹2,460 Cr by existing shareholders.

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#thread
#IPOreview

Objects of the Offer:-
Delhivery proposes to utilise the Net Proceeds towards funding the following objects:
Funding organic growth - 25,00 Cr
Funding inorganic growth through acquisitions - 12,50 Cr

Under the OFS, investors Carlyle Group & SoftBank as well as Delhivery's co-founders will divest their shareholding.
Pre-offer holding of Selling Shareholders:

CA Swift Investments - 7.42%
Deli CMF Pte. -1.11%
SVF Doorbell (Cayman) Ltd- 22.78%
Times Internet Limited - 5.10%

Delhivery co-founder are also selling their holdings through OFS:-

Kapil Bharati -1.11%,
Mohit Tandon-1.88 and
Suraj Saharan -1.79% will sell shares worth ₹14 crore, ₹40 crore and ₹6 crore, respectively.

(DELHIVERY DOES NOT HAVE AN IDENTIFIABLE PROMOTER)

#delhiveryipo

As on June 30, 2021, Delhivery is valued at 4743.6 Cr (Networth)
Company has a borrowing of ₹342.3 Cr as on 30 Jun 21.

Delhivery has Outstanding litigation as follows:-
Litigation involving Company- 42 Crore
Litigation involving Subsidiaries- 73 Crore
Litigation involving Directors- 162.78 Crore

(There are 42 consumer cases filed against our Company before various forums)

Average cost of acquisition of equity shares of the Selling Shareholders
Carlyle Group (CA Swift Investment)- 139.88₹
SVF DOORBELL (CAYMAN) LTD-196.19₹
Deli CMF Pte Ltd- 142.91₹
Times Internet Ltd- 3.63₹
Kapil Bharti -35.18₹
Mohit Tandan & Suraj Saharan - .10₹

Split of equity shares in the last one year:-
Each equity share of Company of face value of
₹10 was split into 10 Equity Shares of face value of ₹1 each. Therefore, an aggregate of 18,718,670 equity
shares of ₹10 each were split into 187,186,700 Equity Shares of ₹1 each.

Company operate an asset light business model, leasing all of logistics facilities. As of June 30, 2021, they have leased
2,473 properties for our offices, gateways, warehouses, hubs and last mile delivery centres (collectively facilities are leased)

Delhivery also engaged over 6,000 contractors and network partners across various first mile, middle mile and last mile services in the three months ended June 30, 2021, and 26,370 last mile delivery agents in June 2021.

They have also engaged contractual manpower agencies to provide a large
number of contracted workers for logistics facilities. As of June 30, 2021, 27,313 contracted workers were
active in their operations.Delhivery is handling most of their works through manpower agencies.

Few points for be causious:-
1. Risks associated with shipments handled and transported through network.
2. Risks associated
with transportation and cash-on-delivery, which may not be fully covered by our insurance policies.
3. Transport & logistics is a hiighly fragmented.

4. Industry is facing intense competition from peer companies.
5. Significant portion of business is attributable to certain large customers. If company fail to expand the size of business then revenue, profitability and growth may be harmed.

6. Delays or defaults in payment by customers or the tightening of payment periods to our suppliers could
affect company's cash flows and may adversely affect financial condition and operations.

7. Delhivery's business generates & processes a large quantity of confidential customer data. Failure to protect customers’ or end consumers’ data through improper handling or unauthorised access could damage their reputation & substantially harm business & results of operations

Offer document
Offer Equity Shares aggregating up to ₹74,60 Crore
Fresh issue - ₹5000 Crore
OFS - ₹2460 Crore

Promoter holdings:-
5.10% of promoter holding is pledged.

Delhivery's IPO can be applied for flat to nominal listing gains. Investment for a long term horizon will be much safe and sound for IPO investors.
I will happy to accept further queries on this topic.

Thank you
#ipo
@Team_IPOMantra
@delhivery