As per reports, it has come to notice that there is a block deal performed between the Japanese multinational conglomerate SoftBank Group and its investee logistics company Delhivery. SoftBank Group owns around 18 per cent and laid off around 3.4 per stake worth Rs 600 crore through block deals as of 1st of March, 2023.
There was a change of hands of around 28 million equity shares, which represented 3.8 per cent of the total equity shares of Delhivery. The sole book-runner for the mentioned deal is Citi, giving a 3-5 per cent discount to the current market price which is 335.1 per share.
SoftBank held a stake in Delhivery via its investment arm SVF Doorbell (Cayman) Ltd and was the biggest shareholder in the company as of December 2022 with an 18.42% stake which is equivalent to 13.4 crore shares.
Softbank’s stake sale in Delhivery has been observed just a few days after the American investment management firm Tiger Global Management sold a 1.7 per cent stake in the company. Tiger Global, through its venture capital firm, held a 4.68 per cent stake in the company as of Q3 ending December 2022.
Delhivery Group has built a nationwide network with a presence in every state servicing over 18500 pin codes through 22 automated sort centres, 92 gateways, 93 fulfilment centres, and 2751 direct delivery centres. With a team of over 52700 people, the company is performing all its operations to deliver 24 hours a day, 7 days a week, 365 days a year.
Talking about some of the financial indicators of the company, Revenues, in the previous quarter, has shown an improvement of approximately 1.5 per cent which is from 1,796 crores in Q2 v/s 1,823 crores in Q3. Net profits, though negative, have improved QoQ with -262 crores in Q2 as compared to -194 in Q3.
With a downside during the early trading hours and touching Rs 337, the stock soon witnessed a rally in prices and currently trades at Rs 350 till the afternoon. Having been listed at Rs 495.20 on NSE, the current market price shows a downfall of around 29.5% from those levels.
Written by Amit Madnani
