Shares of Delhivery hit an all-time low of 317 Indian rupees ($3.88) on Wednesday, taking its market capitalization down to $2.8 billion, falling below the valuation at which it raised capital from investors private in 2021 as the Indian logistics company grapples with the aftermath. of a bulk sale and a muted growth report.
Shares in the Gurgaon-based company, which went public in May this year, fell as low as 317 Indian rupees, considerably below its issue price of 487 and its all-time high of 708.45. The stock move follows CA Swift Investments offloading its position in Delhivery for $74.2 million this week. A sell-off puts downward pressure on stocks.
At the current share price, Delhivery’s market cap has fallen to $2.8 billion. It was valued at $3 billion in a round led by Fidelity in May 2021. The company has raised over $2.3 billion in private rounds and IPO (including secondary sale).
Founded in 2011, Delhivery is one of India’s largest fully integrated logistics companies, serving customers in over 18,000 postcodes. It counts SoftBank Vision Fund, Tiger Global, Carlyle Group, Steadview Capital, Singapore’s GIC and UK’s Baillie Gifford among its backers.
The startup announces weak quarterly growth in activity last month, saying its supply chain service and truckload business volume had declined.
The company assured investors that it made “sufficient capacity investments in FY22 and early FY23 to maintain our current growth rate and expect further mega decisions. – gateways and sorters only at the start of the 24″ exercise.
Delhivery is among a handful of Indian tech startups listed over the past year and a half. All other startups are also trading well below their IPO prices. Indian fintech giant Paytm, which hit an all-time low on Tuesday, slipped further to 452 Indian rupees on Wednesday, reducing its market capitalization to $3.6 billion. Online insurer Policybazaar fell to 391 Indian rupees, down from the issue price of 980.
India Sensex – the local stock benchmark – remains up 4.16% this year, significantly outperforming the S&P 500 (down 16.5%) and China’s CSI 300 (down 23, 27%).