The expected sale of a stake by Carlyle sends Delhivery shares up 7%

22 Jun 2023 , 01:31 AM

On hearing that American private equity firm Carlyle was selling a 2.53% interest in the e-commerce logistics company, Delhivery shares increased by over 7% in Thursday’s opening trade on the NSE.

According to ET, the deal might bring the PE company as much as Rs 709.5 crore, or $86 million. With this block transaction, Carlyle will sell all of its shares in Delhivery.

After the block offer, buying activity in the stock increased and by 9:30 am, over 34.56 lakh shares had been traded on the NSE.

The block deal’s broker is Citigroup.

According to the ET article, Carlyle made its initial investment in Delhivery in 2017 as part of a $100 million funding round and later increased it as part of a $395 million round sponsored by SoftBank in 2019. In May 2022, Delhivery went public, pricing its shares at Rs 487 each and raising Rs 5,235 crore through a combination of main and secondary stock offerings.

Carlyle sold 9.3 million shares at the IPO for a total of Rs 454 crore. Before the IPO, Carlyle owned 7.16% of the company.

Carlyle sold a 2.5% share for a total of Rs 607 crore in November 2022.

The stock has fallen 44% from its 52-week high price of Rs 702 at this time. According to Trendlyne statistics, it is currently trading at a Price to Book ratio of 3.1, which is lower than the industry average. It has traded with a 1-month beta of 1.44 and has been relatively erratic.

The stock declined more than 1% over the course of two straight sessions until today’s gains.

The stock has reached an overbought zone as a result of the rally’s heavy buying activity, with the momentum indicator MFI increasing to 82. Overbought is defined as a number exceeding 70.

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