Logistics and supply chain company Delhivery is looking
to launch its initial public offering (IPO) in the June 2022 quarter. In
November 2021, the Gurugram-based firm filed its draft papers with the market
regulator Securities exchange board of India (SEBI). It received SEBI’s
approval for the IPO in January.

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Challenging market conditions due to the US Federal
Reserve’s aggressive policy and Russia’s invasion of Ukraine have disturbed the
IPO market, following a record-break 2021. The market has improved in the past
few days amid hopes for an end to the Russia-Ukraine war. If the market
situation improves, large issuances such as Delhivery can be expected, reported
Business Standard.

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Delhivery had planned to raise more than Rs 7,000 crore
through the listing, including a fresh issue of shares worth Rs 5,000 crore and
an offer-for-sale (OFS) of Rs 2,460 crore.

The Softbank-backed company was founded in 2011 by Mohit
Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan. It is
the country’s largest multimodal, fully-integrated logistics and supply-chain
firm by revenue.

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The IPO-bound company on Thursday said that it has
partnered with Reliance-owned fashion and apparel marketplace Ajio to improve
customer experience. “Delhivery partnered with Ajio to launch a
technology-based Quality Check Return Product (QC-RVP). The QC-RVP product
enables Delhivery’s around 26,000 last mile agents to perform stringent quality
checks at the customer’s doorstep before returning the shipment to Ajio.” the
company said in a statement.

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According to a recent note by brokerage firm Motilal
Oswal, India’s logistics sector offers a large addressable opportunity as it is
estimated to grow at an annualized rate of 9% to $365 billion between FY20 and
FY26. It expects the growth to be higher for the organised players due to their
relentless focus on technology and automation.

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Currently, the logistics market is fragmented with
organized players accounting for less than 4% of the market share. The shift
from unorganized to organized is already underway, said Motilal Oswal.

Some of the key positives of Delhivery are an asset-light
business model, diverse customer base and sophisticated infrastructure, the
brokerage said.

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Apart from Delhivery, Bajaj Electronics, One Mobikwik
Systems, VLCC Healthcare, Utkarsh Small Finance Bank and Go Airlines are the
few companies that are expected to hit the market soon.