SoftBank Group Corp. is set to divest shares worth $154 million (₹1,250 crore) in the Indian logistics firm, Delhivery. This decision comes as part of SoftBank’s ongoing efforts to restructure its holdings in publicly traded companies. The block deal, scheduled for Friday, will see SVF Doorbell (Cayman) Ltd, an entity owned by SoftBank, offload 31 million shares of Delhivery at a price range of ₹403.5 to ₹413.85 per share, representing a discount of no more than 2.5% compared to the previous day’s closing price.
SoftBank, led by visionary Masayoshi Son, plans to retain a 10-11% ownership stake in Delhivery following this sale. This move follows SoftBank’s prior divestments, including a small stake sale during Delhivery’s initial public offering (IPO) in 2022 and the recent sale of a 3.8% stake for ₹954 crore in March of this year.
With this transaction, SoftBank is set to realize approximately $310 million from its Delhivery investments, marking a strategic shift in its Delhivery holdings from an initial $380 million. Back in 2018, SoftBank held a substantial 22% ownership stake in the logistics company. However, as of September 2023, SVF’s ownership in Delhivery had decreased to 14.46%.
Delhivery, a prominent player in the Indian logistics sector, closed its shares at ₹424.35 on the Bombay Stock Exchange (BSE) on November 16, slightly lower than its IPO price of ₹487. Nevertheless, the company maintains a market capitalization of ₹30,436 crore.
Delhivery has exhibited robust financial performance, with its operating revenues growing by 10.55% to ₹1,929.8 crore during the June quarter, compared to ₹1,745.7 crore in the corresponding period the previous year.
SoftBank’s divestment in Delhivery is part of its broader strategy to reduce its holdings in publicly traded companies within its investment portfolio. This strategy also includes divestments from other prominent Indian companies, such as Zomato and Paytm. Last month, SoftBank successfully raised ₹1,020 crore by selling a 1.1% stake in Zomato.
Sumer Juneja, Managing Partner at SoftBank, discussed the company’s India portfolio in an interview with Mint in August. He revealed that SoftBank had achieved over $5.5 billion in exits from its India portfolio since establishing its Mumbai office in November 2018. Out of this total, approximately $1.5 billion had been realized in the last 12-18 months.
SoftBank’s strategic divestment in Delhivery underscores the company’s adaptability in managing its investments and seizing opportunities to unlock value from its diverse portfolio. This move not only allows SoftBank to capitalize on its investments but also ensures its continued presence in the dynamic logistics sector through its retained ownership stake in Delhivery.
