NEW DELHI: After losing fortunes in Zomato, Paytm and other new-age companies, retail investors have given the IPO of logistic service provider Delhivery, a miss. In its initial share sale that ended on Friday, retail investors bid only for 57% of the shares reserved for them.
This segment bid for 64,36,980 shares as against 1,12,87,878 shares was on offer for them, a clear indication that they have started looking for companies that are not seeking a lofty valuation and leaving room for future growth of investors’ wealth.
Similarly, employees booked only 27% of their portion while non-institutional investors bid for 30% shares of the allotted quota. The company had reserved shares worth Rs 20 crore for employees and that too at a Rs 25 discount to the final offer price.
It was on the back of qualified institutional buyers that the initial public offering of logistics services provider Delhivery got subscribed 1.63 times on the final day of the bidding. Qualified institutional buyers have subscribed 2.66 times. The price band for the offer was fixed at Rs 462-487 per share.
Of the total issue size, 75% is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors. The offer size of the IPO has been cut to 6.25 crore from 10.75 crore shares after the logistics services provider raised Rs 2,346.7 crore from 64 anchor investors. Delhivery is planning to raise Rs 5,235 crore through its public issue. Analysts are divided over the issue as the company remains a loss-making entity.