Canadian pension fund reduces its stake in Delhivery through block deal; These funds were purchasers

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Canadian pension fund reduces its stake in Delhivery through block deal; These funds were purchasers

Team FS

25/Apr/2024

Key Points:

CPPIB Trims Stake: The Canada Pension Plan Investment Board (CPPIB) reduces its stake in Delhivery Ltd. by 2.77% via block deals, now holding 3.18% in the company.
Block Deal Dynamics: Over 2 crore shares of Delhivery, valued at over ₹900 crore, changed hands in a block deal on Wednesday, with Fidelity Funds, HSBC, and the Smallcap World Fund among the buyers.
Market Performance: Despite recent fluctuations, Delhivery's shares are trading higher on Thursday, showcasing resilience in the face of market challenges.

In a flurry of market activity, logistics services provider Delhivery Ltd. witnessed significant movements in its shareholding and trading dynamics. Here's a closer look at the latest developments shaping Delhivery's journey in the stock market.

CPPIB's Stake Reduction
The Canada Pension Plan Investment Board (CPPIB) made headlines as it decided to pare down its stake in Delhivery Ltd. by 2.77% through block deals conducted on Wednesday. This move comes after CPPIB held a 5.96% stake in Delhivery for the quarter ending March 31, 2024, marking a notable shift in its investment strategy.

Block Deal Buzz
The block deals on Wednesday saw a whopping 2 crore shares of Delhivery changing hands, valued at over ₹900 crore. Among the buyers in these transactions were prominent entities like Fidelity Funds, HSBC, and the Smallcap World Fund, each acquiring a slice of Delhivery's pie. Notably, the Smallcap World Fund emerged as a major player, securing a lion's share of the block and purchasing a 1.87% stake in the company.

Market Resilience and Rally
Despite the intricacies of stake sales and block deals, Delhivery's shares displayed resilience as they surged 2.9% higher on Thursday, trading at ₹461.55. This rally is particularly significant in light of Delhivery's standing as one of the few new age listings, alongside Paytm, that are still trading below their IPO price. Currently, the stock sits 5% below its IPO price of ₹487, having made its stock market debut in 2022.

Exploring Delhivery's Performance
Delving deeper into Delhivery's market performance, it's evident that the company has weathered the storm of market volatility over the past year. With shares witnessing a 27% rise in the last 12 months, including a notable 20% surge in 2024 alone, Delhivery continues to command investor interest despite the challenges posed by the market landscape.

Diverse Shareholder Landscape
Delhivery boasts a diverse shareholder base, with entities like Softbank, Baillie Gifford, Times Internet, and Fedex Express Transportation and Supply Chain Services holding stakes in the company. Noteworthy among these is Akash Prakash's Amansa Holdings, which holds a 1.18% stake in Delhivery, adding further depth to the company's investor profile.

Looking Ahead
As Delhivery navigates the ebbs and flows of the stock market, its resilience and ability to attract diverse investors underscore its potential for sustained growth. With new players entering the fray and existing shareholders reaffirming their confidence, Delhivery's journey in the stock market promises to be one of continued evolution and opportunity.

Also Read : Dr. Reddy's and Nestlé India Join Forces in Nutraceuticals Venture

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Canadian pension fund reduces its stake in Delhivery through block deal; These funds were purchasers

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