Delhivery Shares Drop Into Red As SoftBank Said To Eye Exit

Delhivery’s shares were facing downward pressure on Firday as Japanese investor SoftBank was reportedly looking to reduce its stake in the logistics firm.

What Happened: SoftBank plans to sell a $150 million (₹1,250 crore) stake, around 4% of its holding, through a block deal, according to multiple media reports, citing sources. As of September 2023, SVF Doorbell (Caymen), SoftBank’s entity, held around 14.46% stake in Delhivery.

Delhivery has not officially commented on the plan. On November 16, before the news broke, the stock, which had gained over 13 percent in the past year, closed in the black at ₹411.36.

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Why It Matters: In the September quarter, Delhivery managed to narrow its losses to ₹103 crore from ₹254 crore in the year-ago quarter, while revenue witnessed an 8% growth, reaching ₹1,941.7 crore.

Launched in 2011 and listed in 2022, Delhivery is an integrated logistics player offering services like express parcel, warehousing and data intelligence.

If the stake sale proceeds, it will mark the latest in a series of divestments by SoftBank, which recently sold a part stake in Zomato for around ₹1,000 crore and a 2.54% stake in PB Fintech, the parent company of Policybazaar, for ₹876 crore in October.

Price Action: Delhivery’s share price fell 2.65% to ₹402.90 at the start of trading on Friday.

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