SoftBank-backed logistics firm Delhivery aims for over $5.5 bln valuation in India IPO

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BENGALURU, Nov 2 (Reuters) - Indian logistics firm Delhivery is seeking a valuation of more than $5.5 billion, a source familiar with the matter told Reuters, as the SoftBank-backed company filed for an initial public offering of up to 74.6 billion rupees ($997.33 million).

The filing comes on the heels of several public offerings this year, such as TPG-backed Nykaa, SoftBank-backed Paytm and online insurance aggregator Policybazaar, as abundant liquidity and strong retail participation pushed the Indian stock market to record levels.

Delhivery, which is also a third-party logistics provider for Inc (AMZN.O), competes with DHL's unit Blue Dart Express Ltd (BLDT.NS) and DTDC India in a sector that had a direct spend of $216 billion in fiscal 2020 and is expected to grow to $365 billion by fiscal 2026.

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The company's IPO will consist of a fresh issue of shares worth 50 billion rupees and an offer for sale of shares worth 24.6 billion rupees, according to a copy of Delhivery's draft herring prospectus dated Nov. 1.

Private equity firm Carlyle Group Inc (CG.O), which has a 7.42% stake in the company is selling shares worth 9.2 billion rupees in the IPO, while majority shareholder SoftBank Group Corp (9984.T), with a 22.8% stake, is looking to offload shares worth 7.5 billion rupees.

Delhivery's loss widened to 4.16 billion rupees for the fiscal year ended March 31, 2021, from 2.69 billion rupees a year earlier, while revenue from contracts with customers rose 31% to 36.47 billion rupees.

Kotak Mahindra Capital, Morgan Stanley, BofA Securities and Citigroup are the bookrunning lead managers for the IPO.

Fashion and cosmetics e-commerce platform Nykaa on Monday became the latest start-up to draw strong investor interest for its public offering, with bids oversubscribed by nearly 82 times. read more

($1 = 74.8000 Indian rupees)

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Reporting by Chandini Monnappa and Rama Venkat in Bengaluru; Editing by Subhranshu Sahu and Shounak Dasgupta

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