Gurugram-based logistics company Delhivery has allotted 11.79 lakh equity shares following the exercise of vested employee stock options. The Stakeholders’ Relationship Committee approved the allotment on March 10, 2025. The allocation includes 3.24 lakh shares under ESOP 2012, 6.89 lakh under ESOP II 2020, and 1.66 lakh under ESOP III 2020. This move increased the company’s paid-up share capital from Rs 74.44 crore to Rs 74.55 crore. The shares have a face value of Re 1 each, and the exercise prices varied across different ESOP plans, with some as low as Re 0.10. Delhivery has confirmed compliance with SEBI regulations for share-based employee benefits. The company’s shares were trading at Rs 254.80 on NSE at 1:35 PM on the announcement day. The newly issued shares will hold the same value as existing equity shares.
1. Understanding Delhivery’s Business Model
1.1 Working Model
Delhivery operates on a technology-driven logistics and supply chain model, offering services such as express parcel transportation, warehousing, and freight. The company integrates artificial intelligence and machine learning to optimize operations and ensure efficient last-mile delivery.
1.2 Revenue Model
The company generates revenue through multiple streams, including e-commerce logistics, freight services, supply chain solutions, and cross-border logistics. Its major clients include e-commerce platforms, small businesses, and large enterprises.
1.3 Funding Background
Since its inception, Delhivery has raised significant funding from investors like SoftBank, Tiger Global, and Carlyle Group. It became a publicly listed company in 2022, strengthening its financial stability.
1.4 Founders and Leadership
Delhivery was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati. The founders brought expertise from technology, logistics, and business domains, shaping the company into a market leader.
1.5 Services and Products
The company provides parcel transportation, warehousing, freight solutions, and cross-border shipping. Recently, it launched ‘Rapid Commerce,’ a sub-two-hour delivery service catering to fast-growing consumer demands.
2. Details of the Share Allotment
2.1 Breakdown of Shares Allotted
Delhivery allotted 11,79,486 equity shares under different ESOP schemes:
- ESOP 2012: 3,24,337 shares
- ESOP II 2020: 6,89,049 shares
- ESOP III 2020: 1,66,100 shares
2.2 Impact on Share Capital
The paid-up share capital increased from Rs 74.44 crore to Rs 74.55 crore. This signifies the company’s commitment to rewarding employees through stock-based incentives.
2.3 Exercise Price and Funds Raised
The exercise prices ranged from Re 0.10 to Rs 29.85. The company raised Rs 32,54,439.25 from these exercises.
3. Market Response and Future Implications
3.1 Stock Market Performance
On the day of the announcement, Delhivery’s shares traded at Rs 254.80 on the NSE. The market reaction remained stable, reflecting investor confidence in the company’s long-term strategy.
3.2 Regulatory Compliance
The allotment adheres to SEBI’s Share-Based Employee Benefits and Sweat Equity Regulations, 2021. This ensures transparency and compliance with corporate governance norms.
4. Learning for Startups and Entrepreneurs
4.1 Employee Stock Options as a Retention Tool
ESOPs incentivize employees, ensuring long-term commitment and productivity.
4.2 Financial Planning for Growth
Strategic funding allocation enhances a company’s growth trajectory.
4.3 Regulatory Compliance and Market Stability
Startups must align with regulatory frameworks to maintain market trust and investor confidence.
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