Delhivery Ltd saw its shares fall nearly 4% on Friday amid heavy trading, following speculation that major shareholder SoftBank (TYO:9984) might sell a portion of its stake. The logistics company's stock briefly touched ₹398.50, marking a 3.63% drop during the session, before recovering some ground.
The market buzz centered on rumors that SoftBank was considering selling about $150 million worth of Delhivery shares through a block deal, with Kotak Mahindra Capital orchestrating the transaction. This news led to a significant increase in trading volume, which skyrocketed to ₹808.32 crore as 1.8 crore shares, representing 2.51% of the company's equity at ₹747 crore (INR100 crore = approx. USD12 million), were traded at ₹403 each.
Despite the day's share price volatility, Delhivery has shown operational improvements in recent times. In its third quarter, the company successfully recaptured lost market share and reported better yields in its part truckload (PTL) business. These developments suggest that Delhivery's management strategies are effectively targeting profitability and growth.
Emkay Global has taken a positive stance on Delhivery's prospects, recommending a Buy with a price target of ₹490. Their outlook is based on expectations of a surge in demand during the third quarter and the company's potential shift to EBITDA positivity in the second half of the year, bolstered by robust cash reserves.
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