Softbank to offload Delhivery shares worth $150 million today: Report

Delhivery Block Deal: Softbank is reportedly looking to sell some of its Delhivery shares worth $150 million today. As per Moneycontrol, SoftBank was seeking to sell about 4% stake in Delhivery via the block deal route.

Kotak Mahindra Capital has reportedly suggested for the above-mentioned transaction. Softbank entity SVF Doorbell ( Cayman) Ltd currently holds 14.46% stake in Delhivery.

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In October too, Softbank had sold over Rs 1,000 crore worth shares of Zomato Ltd. Before that in August the Japanese firm had offloaded shares worth Rs 940 crore in Zomato through a block deal in August.

Delhivery's Performance

In the past six months, the stock of Delhivery has risen by nearly 15%. Delhivery's performance has been robust in Q2 despite the seasonality. Emkay Global in early November had mentioned that regaining lost wallet share during Spoton’s integration along with yield improvement in the PTL business underpins the management’s focus on improving profitability together with gaining market share.

"With a bulk of the network expansion investment for FY24 completed and pickup in demand imminent in Q3 (B2C monthly volume run rate up over 15% vs. Q2 average), H2 should see decent operating leverage for the company to turn EBITDA positive. Strong cash position lends support to future expansion plans while keeping any aggressive competition at bay," Emkay Global.

The brokerage has also given a buy rating on the stock with a target of Rs 490.

Meanwhile, another brokerage firm CLSA had reduced the share price target on Delhivery Ltd despite the logistics firm cutting its losses by more than half in the September quarter. The fresh CLSA target stands Rs 493 compared with Rs 550 earlier, as the brokerage reduced its sales estimates for FY24-25 by 3.2%.