Shares of logistics company Delhivery tanked on Wednesday after reports that Softbank, its single largest public stakeholder, is looking to sell a stake in the company via block deals worth ₹600 crore.
What Happened? The Japanese tech conglomerate has been slowing down its India investments over the last few years and is trying to offload stakes in Indian startups and its sale of Delhivery shares via block deals on March 1 didn’t come across as a major shock, per a CNBC report.
It was also reported that SoftBank was likely to sell the shares at a discount of 3%-5% to the current market price. The company was also set to increase the size of the block deals should there be decent demand for the shares.
It is worth noting that SoftBank holds a stake in Delhivery via its investment arm SVF Doorbell (Cayman) Ltd. As of December 2022, the company owns as much as 18.42% stake in Delhivery with 13.4 crore shares.
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The losses of listed as well as unlisted Indian startups have been hitting the bottom line of SoftBank hard for many quarters now. The move made the company try to leave as many Indian startups as possible from its portfolio in a bit to shrink losses.
Softbank sold 4.5% of its stake in Paytm in a deal worth about $200 million (₹1,650 crore) back in November 2022 and also sold over 5% stake in PB Fintech aka Policybazaar via block deals in December 2022.
However, it must be noted that SoftBank has seen good returns from Delhivery. It had invested $300 million (₹2,474.6 crore) in the logistics unicorn and saw earnings of $200 million (₹1,650 crore) from the company, per SoftBank.
Price Action: Delhivery shares were trading 1.55% lower at ₹340.25 on Wednesday after markets opened for trading.
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