Delhivery Ltd., a fully-integrated logistics services player, has earmarked ₹1,250 crore for funding inorganic growth through acquisitions and other strategic initiatives, the company said in its draft red herring prospectus filed with SEBI.
The company is planning to raise fresh capital of ₹5,000 crore to fuel its growth and expansion plans. The proposed IPO will also include an offer-for-sale amounting to ₹2,460 crore.
It said it will continue to look for high-quality acquisition and investment opportunities within and outside India that are complementary to its business or that enable it to build new, valuable capabilities for customers, strengthen or establish its presence in key target markets in India and globally.
“Such acquisitions will enable Delhivery to gain access to software and hardware technology, expand customer base or gain excess to a skilled team,” it said.
It had invested₹1,544.60 crore in acquisitions and strategic initiatives in the past five years (excluding the asset purchase from FedEx and TNT India which is subject to the fulfilment of certain closing conditions, including receipt of the requisite regulatory approval).
In August last year, Delhivery acquired Spoton Logistics to build further scale in part truck load (PTL) freight services business.
The acquisition targets need to have strategic fit with existing business lines of the company; or should have domain expertise and experience in the markets it operates in or wish to expand into; and should have experienced and skilled team among others, it said.