Delhivery lock-in expiry: Softbank, Tiger Global sitting on gains; Fedex stares at a loss

Up to 82.42 percent of Delhivery’s shareholding, amounting to 598 million shares, will be free to trade next week. With the stock having tanked recently, investors will be watching out for potential fire sales

‘);
$(‘#lastUpdated_’+articleId).text(resData[stkKey][‘lastupdate’]);

//if(resData[stkKey][‘percentchange’] > 0){
// $(‘#greentxt_’+articleId).removeClass(“redtxt”).addClass(“greentxt”);
// $(‘.arw_red’).removeClass(“arw_red”).addClass(“arw_green”);
//}else if(resData[stkKey][‘percentchange’] = 0){
$(‘#greentxt_’+articleId).removeClass(“redtxt”).addClass(“greentxt”);
//$(‘.arw_red’).removeClass(“arw_red”).addClass(“arw_green”);
$(‘#gainlosstxt_’+articleId).find(“.arw_red”).removeClass(“arw_red”).addClass(“arw_green”);
}else if(resData[stkKey][‘percentchange’] 0)
{
var resStr=”;

var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’;
$.get( “//www.moneycontrol.com/mccode/common/rhsdata.html”, function( data ) {
$(‘#backInner1_rhsPop’).html(data);
$.ajax({url:url,
type:”POST”,
dataType:”json”,
data:{q_f:typparam1,wSec:secglbVar,wArray:lastRsrs},
success:function(d)
{
if(typparam1==’1′) // rhs
{
var appndStr=”;
var newappndStr = makeMiddleRDivNew(d);
appndStr = newappndStr[0];
var titStr=”;var editw=”;
var typevar=”;
var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’);
var phead =’Why add to Portfolio?’;
if(secglbVar ==1)
{
var stkdtxt=’this stock’;
var fltxt=’ it ‘;
typevar =’Stock ‘;
if(lastRsrs.length>1){
stkdtxt=’these stocks’;
typevar =’Stocks ‘;fltxt=’ them ‘;
}

}

//var popretStr =lvPOPRHS(phead,pparr);
//$(‘#poprhsAdd’).html(popretStr);
//$(‘.btmbgnwr’).show();
var tickTxt =’‘;
if(typparam1==1)
{
var modalContent = ‘Watchlist has been updated successfully.’;
var modalStatus = ‘success’; //if error, use ‘error’

$(‘.mc-modal-content’).text(modalContent);
$(‘.mc-modal-wrap’).css(‘display’,’flex’);
$(‘.mc-modal’).addClass(modalStatus);

//var existsFlag=$.inArray(‘added’,newappndStr[1]);
//$(‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’);
//if(existsFlag == -1)
//{
// if(lastRsrs.length > 1)
// $(‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’);
// else
// $(‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’);
//
//}
}

//$(‘.accdiv’).html(”);
//$(‘.accdiv’).html(appndStr);
}
},
//complete:function(d){
// if(typparam1==1)
// {
// watchlist_popup(‘open’);
// }
//}
});
});
}
else
{
var disNam =’stock’;
if($(‘#impact_option’).html()==’STOCKS’)
disNam =’stock’;
if($(‘#impact_option’).html()==’MUTUAL FUNDS’)
disNam =’mutual fund’;
if($(‘#impact_option’).html()==’COMMODITIES’)
disNam =’commodity’;

alert(‘Please select at least one ‘+disNam);
}
}
else
{
AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’;
commonPopRHS();
/*work_div = 1;
typparam = t;
typparam1 = n;
check_login_pop(1)*/
}
}

function pcSavePort(param,call_pg,dispId)
{
var adtxt=”;
if(readCookie(‘nnmc’)){
if(call_pg == “2”)
{
pass_sec = 2;
}
else
{
pass_sec = 1;
}
var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’;
$.ajax({url:url,
type:”POST”,
//data:{q_f:3,wSec:1,dispid:$(‘input[name=sc_dispid_port]’).val()},

data:{q_f:3,wSec:pass_sec,dispid:dispId},

dataType:”json”,
success:function(d)
{
//var accStr= ”;
//$.each(d.ac,function(i,v)
//{
// accStr+=’‘+v.nm+’‘;
//});
$.each(d.data,function(i,v)
{
if(v.flg == ‘0’)
{
var modalContent = ‘Scheme added to your portfolio.’;
var modalStatus = ‘success’; //if error, use ‘error’

$(‘.mc-modal-content’).text(modalContent);
$(‘.mc-modal-wrap’).css(‘display’,’flex’);
$(‘.mc-modal’).addClass(modalStatus);
//$(‘#acc_sel_port’).html(accStr);
//$(‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’);
//$(‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false);
//
//if(call_pg == “2”)
//{
// adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘;
//}
//else
//{
// adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘;
//}
//$(‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′);
//$(‘#mcpcp_addprof_info’).html(adtxt);
//$(‘#mcpcp_addprof_info’).show();
glbbid=v.id;
}
});
}
});
} else
{
AFTERLOGINCALLBACK = ‘pcSavePort(‘+param+’, ‘+call_pg+’, ‘+dispId+’)’;
commonPopRHS();
/*work_div = 1;
typparam = t;
typparam1 = n;
check_login_pop(1)*/
}

}

function commonPopRHS(e) {
/*var t = ($(window).height() – $(“#” + e).height()) / 2 + $(window).scrollTop();
var n = ($(window).width() – $(“#” + e).width()) / 2 + $(window).scrollLeft();
$(“#” + e).css({
position: “absolute”,
top: t,
left: n
});
$(“#lightbox_cb,#” + e).fadeIn(300);
$(“#lightbox_cb”).remove();
$(“body”).append(”);
$(“#lightbox_cb”).css({
filter: “alpha(opacity=80)”
}).fadeIn()*/

$(“#myframe”).attr(‘src’,’https://accounts.moneycontrol.com/mclogin/?d=2′);
$(“#LoginModal”).modal();
}

function overlay(n)
{
document.getElementById(‘back’).style.width = document.body.clientWidth + “px”;
document.getElementById(‘back’).style.height = document.body.clientHeight +”px”;
document.getElementById(‘back’).style.display = ‘block’;
jQuery.fn.center = function () {
this.css(“position”,”absolute”);
var topPos = ($(window).height() – this.height() ) / 2;
this.css(“top”, -topPos).show().animate({‘top’:topPos},300);
this.css(“left”, ( $(window).width() – this.width() ) / 2);
return this;
}
setTimeout(function(){$(‘#backInner’+n).center()},100);

}
function closeoverlay(n){
document.getElementById(‘back’).style.display = ‘none’;
document.getElementById(‘backInner’+n).style.display = ‘none’;
}
stk_str=”;
stk.forEach(function (stkData,index){
if(index==0){
stk_str+=stkData.stockId.trim();
}else{
stk_str+=’,’+stkData.stockId.trim();
}
});

$.get(‘//www.moneycontrol.com/techmvc/mc_apis/stock_details/?sc_id=’+stk_str, function(data) {
stk.forEach(function (stkData,index){
$(‘#stock-name-‘+stkData.stockId.trim()+’-‘+article_id).text(data[stkData.stockId.trim()][‘nse’][‘shortname’]);
});
});

function redirectToTradeOpenDematAccountOnline(){
if (stock_isinid && stock_tradeType) {
window.open(`https://www.moneycontrol.com/open-demat-account-online?classic=true&script_id=${stock_isinid}&ex=${stock_tradeType}&site=web&asset_class=stock&utm_source=moneycontrol&utm_medium=articlepage&utm_campaign=tradenow&utm_content=webbutton`, ‘_blank’);
}
}

Private equity (PE) and venture capital (VC) firms and pension funds, which were early investors in logistics firm Delhivery, are sitting on significant gains as the company’s pre-IPO lock-in period nears its end.

It is now time for them to take a call on their investments, as 82.42 percent of Delhivery’s shareholding, amounting to 598 million shares, will be free to trade early next week. Softbank, Nexus Partners, Canada Pension Plan Investment Board (CPP Investments), Tiger Global, Times Internet, and Fedex are some of the prominent firms that will be eligible to sell their stakes.

According to reports, the date of expiry is November 24.

Softbank’s SVF Doorbell (Cayman) Ltd. holds 18.5 percent stake in the company, acquired at an average cost of Rs 196 per share. As of Delhivery’s November 18 closing price of Rs 350, Softbank is sitting on a 78.5 percent notional gain on its investment. Similarly, at Rs 86, Tiger Global’s cost of acquisition indicates 4X returns. It has a 5.2 percent stake.

Also Read: SoftBank sells 4.5% in Paytm for Rs 1,631 crore

Nexus Partners has 9.1 percent stake in the company with an average cost of acquisition of Rs 27. This indicates 13X returns on its investment. At Rs 190, CPP Investments’ cost of acquisition means an 84 percent gain. The pension fund holds a 6 percent stake in the logistics firm.

The biggest winner has been Times Internet, which holds a 3.9 percent stake in Delhivery. At an average cost of acquisition of Rs 3.5, it is sitting on 100X gains on its investment. It had offloaded some stake during the company’s initial public offering (IPO).

Fedex, however, has been on the losing side. In 2021, the two companies entered into a strategic alliance to combine Fedex’s global network with Delhivery’s Indian footprint. The former has a 2.9 percent stake in the latter, with an average cost of acquisition of Rs 356. At the current market price, Fedex is staring at a marginal loss on its investment.

October was a bad month for Delhivery. The stock tanked 33 percent after the company said on October 19 that it expected moderate growth in shipment volumes for the rest of FY23 due to high inflation and low average user spends.

In Q2, the company narrowed its losses to Rs 254 crore against losses of Rs 635 crore clocked in the year-ago period. Revenue during Q2FY23 came in at Rs 1,796 crore, which is 22 percent higher than Rs 1,497.7 crore reported in the corresponding quarter of the last fiscal.

With the stock trading 28 percent below its issue price of Rs 487, investors will keenly be watching out for any potential fire sale due to lock-in expiry.

Note: Mehul Bumtaria, a close watcher of IPO markets, along with Tracxn, have helped calculate the average costs of acquisition.