Canada Pension Plan Investment Board Likely To Exit Delhivery, Offload Remaining 3.18% Stake

By Inc42 Media

SUMMARY

Canada Pension Plan Investment Board is expected to offload its remaining 3.18% stake in Delhivery for INR 886 Cr with the floor price set in the range of INR 378 to INR 389 apiece

While the size of the share block to be divested by CPPIB remains unknown, the issue price has been set at INR 2,061 per share

CPPIB’s potential exit comes amid mounting losses at Delhivery with the Gurugram-based company reporting a consolidated net loss of INR 69 Cr in Q4 FY24

Canada’s largest pension fund manager Canada Pension Plan Investment Board (CPPIB) is expected to offload its remaining 3.18% stake in logistics major Delhivery via block deals worth INR 886 Cr.

CPPIB is likely to sell shares of Delhivery via open market transaction on Wednesday (July 10), with the floor price set in the range of INR 378 to INR 389 apiece, CNBC-TV18 reported, citing sources aware of the development.

This reflects a discount of 1.6% to 4.4% from the stock’s opening price on Wednesday. Shares of Delhivery opened at INR 395.60 apiece on the BSE today, up 0.8% from the previous close.

While the size of the share block to be divested by CPPIB remains unknown, the issue price has been set at INR 2,061 per share, as per the report.

As of March 2024, CPPIB held a 5.96% stake in Delhivery. However, in April, it sold a partial 2.77% stake in the stock for about INR 908 Cr. Among the buyers were American Fund Insurance A/C, HSBC, Fidelity, and The Master Trust Bank of Japan.

At the time, CPPIB sold about 2.04 Cr shares at an average price of INR 444.3 apiece.

CPPIB’s potential exit comes amid mounting losses at Delhivery with the Gurugram-based company reporting a consolidated net loss of INR 69 Cr in Q4 FY24.

Delhivery’s operating revenue also fell on a quarterly basis to INR 2,076 Cr in the March quarter from INR 2,194.5 Cr in the previous quarter.

It is to be noted that Delhivery last year saw several of its pre-IPO investors, including Carlyle Group, SoftBank and Tiger Global, partially offloading their holdings in the company.

In fact, in June last year, Carlyle Group exited Delhivery with about 2.7X returns by selling its 1.84 Cr shares in the company in a block transaction worth INR 709.5 Cr.

Earlier this week, Delhivery expanded its employee stock option plan (ESOP) pool by allocating over 6.49 Lakh stock options.

The company has also received approval from the Ministry of Corporate Affairs (MCA) to incorporate its wholly-owned subsidiary, ‘Delhivery Robotics India Private Limited,’ to manufacture drones.

 

Source: Inc42 Media