Delhivery slips over 1% as 28 million shares exchange hands via block deal

At 09:15 am; around 28 million equity shares, which represented 3.8 per cent of total equity shares of Delhivery changed hands on the BSE, shows data

Shares of Delhivery were down 1.5 per cent to Rs 339 in Wednesday’s intra-day trade, after nearly 4 per cent of total equity of logistics solution provider changed hands via block deals.

At 09:15 am; around 28 million equity shares, which represented 3.8 per cent of total equity shares of Delhivery changed hands on the BSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

According to media reports, Japanese Softbank Group planned to sell stake worth Rs 600 crore in Delhivery via block deal. As on December 31, 2022, Softbank held a stake of 18.42 per cent in Delhivery via its subsidiary Svf Doorbell (Cayman) Ltd.

Last week, on February 22, the US-based investment management company Tiger Global Management had sold 20.38 million equity shares—or 2.80 per cent stake—of Delhivery via open market. Prior to the sale, Tiger Global had a 5.38 per cent stake in the company.

As per the filings with BSE, the venture capital funds, Internet Fund III and Tiger Global Investments Fund, managed by Tiger Global Management, have sold 19.28 million and 1.10 million equity shares, respectively.

Post the sale, Internet Fund III holds 2.55 per cent or 18.60 million equity shares in Delhivery, the exchange filing shows.

In the past one month, the stock has outperformed market as it surged 11 per cent, as compared to 1 per cent decline in the S&P BSE Sensex. However, in the past six months, it slipped 40 per cent, as against 1 per cent rise in the benchmark index.

Delhivery is India's largest and fastest-growing fully-integrated logistics services provider. With its nationwide network coverage of over 18,500 pin codes, the company provides a full suite of logistics services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology service.

Technical View

Bias: Positive

Target: Rs 405

Resistance: Rs 359

Support: Rs 329

After having consolidated in the last three months, shares of Delhivery are now seen trading above the 20-WMA (Weekly Moving Average) for the first time since October 10, 2022.

This is a positive sign, for as long as the stock manages to sustain above its 20-WMA, which stands at Rs 340, the stock can potentially rally towards the trend line resistance at Rs 405.

Similarly, on the daily scale, the stock is seen trading above its 20-DMA (Daily Moving Average) and 50-DMA. The stock is now within striking distance of its immediate hurdle at Rs 359 i.e. 100-DMA.

In case, the stock faces resistance around the 100-DMA, the stock can dip back towards the 20-DMA to seek support around Rs 329 level.

Select key momentum oscillators, both, on the daily and weekly charts are in favour of the bulls. Hence, the stock is likely trend with a positive bias in the near-term.

(With inputs from Rex Cano)