In the grey market, the company is commanding a discount of Rs 5 over the issue price of Rs 462-487 per share, signalling a disappointing listing.
Even the market experts are not gung ho over the counter. They said that till the last day, the successful sailing through of the issue was under the screener. Rich valuations and a rout in startup stocks have added to the woes.
Yash Gupta, Equity Research Analyst, Angel One, said Delhivery received a weak response from retail investors, whereas the QIB investors came forward for its rescue on the final day of the bidding and made it a success.
“If we look at the grey market premium, Delhivery is trading in negative and one can expect a soft listing from it, ” he added.
“We had given a neutral rating to the IPO looking at the expensive valuations.”
The Rs 5,235 crore IPO of Delhivery was open for subscription during May 11-13. The company sold shares in a price band of Rs 462-487 apiece and a lot size of 30 shares.
The IPO received a mixed response from the investors as the issue was overall subscribed 1.63 times, thanks to 2.66 times subscription by institutional bidders.
However, investors of other categories kept off the bidding process. The quota for HNI investors was subscribed only 30 per cent, whereas the retail portion was booked only 57 per cent. Even employees bid for 27 per cent of their allocations.
According to experts tracking the subscription figures, Delhivery’s IPO is feeling the heat of sour sentiments of the current market amid the rising mercury.
Atanuu Agarrwal, Co-founder, Upside AI, said that individual investors seem to be spooked by the high inflation numbers and markets are collapsing over the last couple of weeks.
“Underperformance of global tech stocks and tech IPOs in India with curbs on HNI IPO funding were all headwinds,” he added. “Low subscription on the portion reserved for employees would be particularly disappointing for the Company – betrays a lack of confidence in the issue.”
