Delhivery shares: Buzz of block deal; stock gains

Shares of Delhivery Ltd gained nearly a per cent to ₹349 apiece on the BSE in Wednesday’s early trading session on the back of buzz of a large block deal, after reports on Tuesday suggested that Japanese conglomerate Softbank will offload shares worth ₹600 crore in Delhivery through block deals.

Around 2.8 crore shares i.e., 3.8% of equity of Delhivery have changed hands in a block deal window on Wednesday, as per a CNBC-TV18 report. Mint could not independently verify the update.

Softbank, which is the single largest public stakeholder in the logistics company, held 18.42% stake as of December 2022, through its subsidiary Svf Doorbell (Cayman) Ltd.

Last week, Internet Fund III Pte, a fund managed by Tiger Global Management, divested a 1.7% stake (1,23,63,060 shares) in supply chain company for ₹414 crore through an open market transaction, at an average price of ₹335 apiece. Post the transaction, Internet Fund III Pte’s shareholding in the company has reduced to 2.98% from 4.68%.

Delhivery’s net loss widened to ₹195.7 crore for the third quarter ended December 2022 (Q3 FY23) as compared to a loss of ₹127 crore in the yea-ago quarter. Its revenue also declined about 9% to ₹1,823 crore as against ₹2,019 crore year-on-year (YoY).

Jefferies in a note on Delhivery’s Q3 review last month had said that “Dominant in B2C, Delhivery is making a mark in B2B through its Spoton acquisition. Integration issues and slowdown at its e-commerce clients in the next 9-12 months are headwinds, the note stated, adding that the company should break even in FY25E-26E with management’s focus on profitability in an industry with a strong growth tailwind.”

Delhivery is fully-integrated supply chain services company in the domestic and international space. The stock is down more than 35% since its market debut in May 2022.

Leave a Reply

Your email address will not be published. Required fields are marked *