Tiger Global Offloads 1.7% Stake in Delhivery for Rs 414 Crore Through Open Market Sale
- ByStartupStory | February 23, 2023
On Wednesday, Tiger Global Management, an American investment management firm, divested a 1.7% stake in Delhivery Ltd through the open market for Rs 414 crore.
As per bulk deals data, it has been revealed that Internet Fund III Pte, a venture capital firm in which Tiger Global has a stake, has sold a substantial amount of 1,23,63,060 shares of a logistics services provider at a price of Rs 335.06 per share.
However, the selling price was at a discount of nearly 4% when compared to the previous day’s closing price of the stock. As a result, on Wednesday, the stock experienced a significant decline of almost 4%, closing at a price of Rs 336.30 on the National Stock Exchange. This downward trend also marked the end of a 7-day winning streak for the stock. The information about the sale of shares and the subsequent decline in the stock price is crucial for investors and traders to make informed decisions about their investments.
According to recent reports, Tiger Global held a 4.68% stake in Delhivery through a venture capital firm as of the end of December. However, since the company’s listing in May 2022, the stock has corrected by more than 37% due to the ongoing sell-off in new-age technology and high-value companies across the globe. Delhivery reported a net loss of Rs 196 crore for the December quarter, which marks the fifth consecutive quarter of losses for the company. These developments hold significant implications for investors and traders seeking to make informed decisions about their investments in the logistics services provider.
Despite reporting consecutive losses, the operational performance of Delhivery has been on the rise, leading analysts to turn bullish on the company. Delhivery is one of the major players in the Indian logistics market, offering comprehensive solutions across the entire value chain.
According to JM Financial Institutional Securities, the company’s vast network, sophisticated technology, and extensive scale enable it to streamline delivery costs and capture a larger market share. These positive developments are essential for investors and traders to consider when evaluating the potential of the logistics services provider in the Indian market.
JM Financial Institutional Securities has recently initiated coverage on Delhivery’s stock, assigning it a “hold” rating and a target price of Rs 350. The brokerage also noted that the logistics services provider has established strategic partnerships with major international players like Aramex and FedEx, which has allowed the company to expand its reach beyond India by leveraging its existing network without incurring additional fixed costs. These developments highlight the potential for Delhivery to grow and succeed in the competitive Indian logistics market, making it a key consideration for investors and traders.
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