New Delhi
After a muted debut, shares of logistic startup Delhivery saw increased buying even as benchmark indices ended with a minor cut on Tuesday. The stock, despite trading at a discount in the unofficial grey market, got listed at Rs 493, a gain of 1.23% from the issue price on the BSE. During the day, it rallied 16.81% to touch a high of Rs 568.90 before settling at Rs 537.25, a gain of 10.31%.
On the NSE, the stock got listed at Rs 495.20, up 1.68% and closed at Rs 536.25 apiece, a jump of over 10%. This strong performance on its opening day helped Delhivery to command a market valuation of Rs 38,923.93 crore on the BSE. This is about Rs 3,000 lower than the m-cap of fintech firm Paytm even as their pre-listing valuation had a huge difference. Paytm, which gained over 4% on Tuesday, had a valuation Rs 41,960.79 crore.
Amid global sell-off, technology stocks, especially ones that are yet to report profits, have seen massive slump in their valuations in the past couple of months with heavyweights such as Paytm, Zomato and Nykaa wiping out billions of dollars of investors’ wealth. Owing to current volatility, analysts were expecting a discounted listing for Delhivery since its Rs 5,235 crore-IPO got subscribed by only 1.63 times on the final bidding day.
Sahil Barua, founder and CEO of Delhivery, said in his pre-listing speech that there has been a lot of talk about the markets being choppy but one thing is sure that logistics is going to be a $200 billion market. Delhivery is still going to be earning nearly a billion dollars in revenue. We’re still going to be breaking-even and get better in the coming years, he said.
Yash Gupta- Equity Research Analyst, Angel One, said, Short-term investors can book profit in the IPO and long-term investors should remain invested. Currently, the company is trading at a enterprise value/sales of 4.8x and price-to-book value of 5.2x on annualised number of FY22. We have given a neutral rating to Delhivery IPO, added Gupta.
