Shares of Delhivery are down more than 32% since Thursday, below its May issue price, after the Indian logistics company posted moderate quarterly business growth this week.
Delhivery said this week that its supply chain service and truckload volumes had shrunk in the quarter ending September. Shares of Delhivery collapsed on the news, falling from 562 Indian rupees ($6.8) apiece to just 382 Indian rupees ($4.62) before recovering slightly. The issue price of Delhivery was 487 Indian rupees, while its shares rose to a record high of 708.45 Indian rupees in July.
The drop has pushed Delhivery’s market cap below $3.4 billion, just slightly above the $3.2 billion valuation it took in the pre-IPO financing round and below the valuation of $4.2 billion in the secondary transaction among his investors a year ago.
The lock-in period for its pre-IPO shareholders will be lifted on November 10, which could mean a more sizable sale. The company counts SoftBank, Tiger Global, Times Internet, The Carlyle Group, Steadview Capital and Addition among its backers.
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Delhivery has assured investors it is on track for recovery. The company said it has made “sufficient capacity investments in FY22 and early FY23 to support our current growth rate and not expect new mega gateway and sorting decisions until early FY24.”
“As inflation pressures and service outages caused by the monsoon across the country, we expect to see an improvement in volumes, revenues and service margins going forward,” it said in its quarterly report published on local exchanges.
Friday ends a tough week for Indian startups that have gone public for the past year and a half. Nykaa, a fashion e-commerce marketplace that has performed best among tech startups to date, is trading only slightly above the issue price. Shares of online insurer Policybazaar, whose lock-in period for pre-IPO investors also ends next month, have lost more than 60% in value from the issue price.