Canada Pension Plan Investment Board To Offload Entire Stake In Delhivery: Reports

The Canada Pension Plan Investment Board (CPPIB) is reportedly planning to sell its entire remaining stake in Delhivery, a leading Indian logistics company, according to media reports.

The reports indicate that the block deal is expected to be valued at approximately Rs 886 crore, with shares being offered in a price range of Rs 378 to Rs 389 each. This floor price represents a discount of 0.7-3.5 per cent compared to Delhivery's closing price of Rs 399.65 on 9 July.

At the end of the March quarter of FY24, CPPIB held a 5.96 per cent stake in Delhivery. However, the pension fund has already reduced its stake significantly. On 25 April, CPPIB sold around two crore shares, equivalent to a 2.77 per cent stake, for Rs 900 crore.

The decision to offload its entire stake comes amid a volatile period for Delhivery's stock, which has seen fluctuations in its market value. Investors will be closely monitoring the impact of CPPIB's exit on the company's share price and overall market sentiment.

Delhivery, known for its extensive logistics network and innovative solutions in the e-commerce and supply chain sectors, has been a significant player in India's rapidly growing logistics market. The company went public in May 2022, and its stock has been actively traded on Indian exchanges since then.

Market analysts are weighing in on the potential implications of CPPIB's exit, with some suggesting that the move could create short-term pressure on Delhivery's share price, while others view it as an opportunity for new investors to enter the market at a discounted price.