Delhivery Shares Dip Following Block Deal by SoftBank

Delhivery Shares Dip Following Block Deal by SoftBank

VoM News Desk | November 17, 2023 | 11:40 AM IST | Breaking News | Follow on Google News

Delhivery Shares Dip Following Block Deal by SoftBank

Delhivery Shares Dip Following Block Deal by SoftBank

Delhivery, a leading logistics service provider in India, witnessed a decline in its share prices, which fell by 3.70% to ₹398.50 in early trading on Friday. This drop followed a significant block deal involving the sale of the company’s shares.

Block Deal and SoftBank’s Stake Sale

The downturn in Delhivery’s shares was triggered by the transfer of 31 million shares in a block deal. Reports indicated that Japan’s SoftBank Group Corp. planned to sell shares worth $154 million (approximately ₹1,250 crore) in Delhivery through this deal. Post-sale, SoftBank is expected to retain a 10–11% stake in Delhivery.

SoftBank’s Investment and Previous Sales

As of September 30, SoftBank, via its subsidiary SvF Doorbell (Cayman), held a 14.5% stake in Delhivery. The group previously sold 3.8% of its stake in March, amounting to a sale worth ₹954 crore. SoftBank’s total investment in Delhivery amounts to $380 million. Notably, the March bulk deal occurred at ₹340 per share and involved various investors, including the Saudi Arabian Monetary Authority and Morgan Stanley Mauritius.

SoftBank’s Portfolio Liquidation

SoftBank has been actively selling stakes in its publicly held portfolio companies, including Zomato, Paytm, and now Delhivery. Last month, it raised ₹1,020 crore from a sale of a 1.1% stake in Zomato.

Delhivery’s Financial Performance

For the September quarter, Delhivery reported a narrowed net loss of ₹103 crore, a significant improvement from the net loss of ₹254 crore in the same period last year. The company’s revenue from operations grew by 8% to ₹1,914 crore in the second quarter of the current fiscal year, compared to ₹1,796 crore in the previous year.

VoM News Desk

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