For $954.24 billion, the Japanese investment firm Softbank sold 2.8 crore shares, or 3.8% of Delhivery, a unicorn in the logistics industry. According to BSE records, SoftBank sold shares in logistics company Delhivery in a bulk transaction for 954 crore rupees each. With the sale of 2.8 crore shares, SoftBank reduced its ownership of Delhivery to about 14%. SoftBank maintained a stake of more than 18% in Delhivery at the end of December after investing roughly 3,100 crores in the company and selling shares in its IPO for 618 crores.
In intraday trade today, the shares of Delhivery fell 3% on Thursday to $338. According to the shareholding structure, Softbank controlled 18.42% of Delhivery through its subsidiary Svf Doorbell (Cayman) Limited, a stake that has since been sold and is now down to 14%.
Today’s opening price of Delhivery shares was slightly higher at 349.95, and they reached an intraday high of 350 on the BSE. Nevertheless, the stock quickly gave up its gains and fell from the peak of the day to $337.90.
Also, the business approved the February 28 grant of 23,095 stock options to the qualified workers under the Delhivery Employees Stock Option Plan 2012, effective March 1, 2023. India’s logistics business is enormous and highly fragmented, according to the most recent analysis by Delhivery, with direct logistics spending at 8% and the share of top organized companies at 1.5%.
Since being listed on the local bourses on May 24, 2022, Delhivery, which debuted on the stock market, has had a negative return of 37%. The stock experienced a moral decline after reaching an all-time high on July 21, 2022, at a price of 708.45. On January 27, 2023, it fell to a record low of $291. The stock has lost 40% of its value over the last six months, yet it has recovered 12% in a single month. Compared to the 1.6% decline in the BSE benchmark Sensex, the counter has increased by 1% in the past week.
The Gurugram-based logistics services company recorded a net loss of 196 crores for the October-December quarter of the current fiscal year (Q3 Fy23), compared to a loss of 126 crores in the comparable period last fiscal year. The logistics company’s operational revenue decreased by 9% to $1,823 crore from $1,995 crore in the same period the previous year.
Partial truckload freight segment revenue decreased to 277 crores in the quarter that ended in December 2022 from 293 crores in Q2 FY23. In the third quarter of FY23, Delhivery’s Express Parcel services generated $1,200 crore in revenue.
According to international broker Jefferies, the third quarter’s EBITDA loss for Delhivery was less than anticipated because gross profit was higher and other expenses were lower. “Management showed assurance in further cutting losses. The firm maintained its ‘Buy’ call on the stock with a target price of 570 per share and stated that it believes current price determinants would lead to less than 10% express parcel growth over the next three to five years as opposed to the 30%+ levels witnessed in the past.
The Delhivery stock’s target price was lowered by Morgan Stanley analysts to 370 per share, with an “overweight” recommendation. According to the brokerage, increased operating leverage and cost-cutting initiatives led to Adjusted EBITDA that was higher than expected.
