delhivery block deal: Softbank said to have sold 1.8 crore shares of Delhivery, stock falls 4%

Shares of logistics service provider Delhivery fell around 3.75% to the day’s low of Rs 398.80 on Friday morning after 1.8 crore shares of the new-age company changed hands in large block deals. Japanese IT giant Softbank, which owned a 14.46% stake in the company at the end of the September quarter through its entity Svf Doorbell (Cayman), is said to be the likely seller.

The deal was valued at Rs 747 crore at Rs 403 per share, according to reports. Confirmation will come in the evening when exchanges release bulk and block deals data.

According to reports, Softbank was looking at selling about a 4% stake in the logistics services provider. So far in 2023, shares of Delhivery have given healthy returns of nearly 22% to investors.

Also Read: Softbank eyes $150-million share sale in Delhivery via block deals: Report

In March, SoftBank sold a 2.84% stake in Delhivery for Rs 954.2 crore through multiple block deals in the open market.

Over the last two years, SoftBank has been reducing its investments in startups globally. Recently, it offloaded its stake in Paytm parent One97 Communications and PB Fintech. In November last year, Softbank sold a 4.5% stake in Paytm for $200 million.

In the September quarter, Delhivery reported an 8% year-on-year (YoY) rise in revenue to Rs 1,942 crore while its loss had narrowed down by 59% on a YoY basis to Rs 103 crore in Q2 FY24 from Rs 254 crore in Q2 FY23.”The company’s strategy to pass on efficiency gains in the B2C segment (where customers are price-sensitive) bodes well for future market share gains, while yield improvements in the B2B segment, which focuses more on network speed and reliability, should aid the path towards profitability,” Emkay analyst Anshul Agarwal said.

The brokerage expects the company to report adjusted EBITDA breakeven in FY24, and turn PAT/FCF positive in FY26 on the back of operating leverage and reducing capex intensity.

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