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Delhivery shares dip on stake sale rumors; firm regains market share

Published 11/17/2023, 12:11 AM
Updated 11/17/2023, 11:03 AM
© Reuters.
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Delhivery Ltd saw its shares fall nearly 3.46% on Friday amid heavy trading, following SoftBank (TYO:9984)'s confirmed sale of a portion of its stake. The logistics company's stock briefly touched ₹398.50, marking a drop during the session, before closing at Rs 399.55 on the NSE.

The market buzz was indeed accurate as SoftBank, through SVF Doorbell (Cayman) Ltd, sold a 2.5% stake in Delhivery via an open market transaction for Rs 739 crore at Rs 403.51 per share, reducing its ownership to 11.96%. This transaction led to a significant increase in trading volume, which rose to ₹808.32 crore as 1.8 crore shares 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.

In other news from Thursday, India's financial regulator introduced tighter controls on consumer loans, requiring banks to hold more capital and implement board-monitored processes to mitigate risks in the financial system. On an unspecified date, the mines ministry insisted on government approval for Hindustan Zinc Ltd's (HZL) corporate restructuring plans; meanwhile, fast bowler Mohammed Shami's endorsement price doubled to ₹1 crore following his performance at the ICC Men’s Cricket World Cup.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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