Tiger Global sells 1.7% stake in Delhivery via open market for Rs 414 crore

Venture capital firm Internet Fund III Pte, through which Tiger Global, holds a stake in the logistics services provider, sold 1,23,63,060 shares at Rs 335.06 apiece, bulk deals data showed.

The selling price was at a discount of nearly 4% to Tuesday’s closing price of the stock. On Wednesday, the stock ended nearly 4% down at Rs 336.30 on the National Stock Exchange. The fall on Wednesday saw the stock snapping a 7-day winning streak.

As of December-end, Tiger Global through the venture capital firm held 4.68% stake in Delhivery.

Since its listing in May 2022, the stock has corrected over 37% amid sell-off in the new-age technology and high-value companies globally.

For the December quarter, Delhivery reported a net loss of Rs 196 crore compared to a loss of Rs 126.5 crore a year ago. The company posted a loss for the 5th straight quarter.

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But on the operational front, the performance has been improving and analysts have turned bullish on the company. Delhivery is among the largest logistics players in India with full-stack solutions across the value chain. Its scale, deep network, and technology capabilities allow the company to optimise costs of delivery, and hence, gain market share, said JM Financial Institutional Securities.

It has initiated coverage on the stock with a “hold” rating on the stock and a target price of Rs 350.

Delhivery has also entered into mutually beneficial partnerships with large international players such as Aramex and FedEx, which enables it to expand its reach outside India by leveraging its networks without having to incur additional fixed costs, the brokerage said.

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