A Japanese multinational holding company headquartered in Tokyo which focuses on investment management.
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| Source :MoneyControl |
What are Block Deals?
A block deal is a transaction in which more than 5 lakh shares are traded, or in which a company is valued at more than 5 crores.
MoneyControl
Japanese tech conglomerate Softbank Group is planning to sell its stake worth around Rs 600 crore in Delhivery, the Gurugram-based logistics and supply chain company, via block deals, CNBC Awaaz reported on February 28.
The block deals to offload the share could be launched on March 1, reports said. Softbank is also considering the option to upsize, if the deal evokes a strong demand. The shares are likely to be offered at a discount of 3-5 percent against the current market price, the sources privy to the development told CNBC Awaaz.
Citigroup will be the broker for the deal, they added. Delhivery's shares settled at Rs 344.15 at the BSE on February 28, which was 0.5 percent lower as against the previous day's close.
Softbank, through its subsidiary Svf Doorbell (Cayman) Ltd, held a stake of 18.42 percent in Delhivery as of December 2022. This made it the largest public shareholder in the company.
The report of the tech giant planning to cut its stake via block deals comes a week after US-based investment management firm Tiger Global Management offloaded 1.7 percent stake in Delhivery for Rs 414 crore through open market transactions.
The Economic Times | Market
Japanese multinational conglomerate Softbank Group is looking to sell shares worth Rs 600 crore in Delhivery through block deals on Wednesday, according to reports.
The conglomerate may look at increasing the size if it gets good demand. The shares are likely to be offered at a 3-5% discount to the current market price. On Tuesday, shares of the logistics services provider ended 0.1% lower on the NSE at Rs 344.80.
Citigroup has been appointed as the broker to the deal. The recovery and the strong gains that the stock registered in this month may have prompted Softbank to take off some profits off the table. In February, shares of Delhivery gained about 15%.
This is the 2nd time since listing in June last year the stock has given double-digit returns in a month. Softbank is the single largest public stakeholder in the logistics company, and held 18.42% stake as of December end, through its entity Svf Doorbell (Cayman) Ltd. Prior to Delhivery’s IPO, Softbank had acquired over 22% stake in the company.
Last week, American investment management firm Tiger Global Management sold 1.7% stake in Delhivery through the open market for Rs 414 crore. As of December-end, ........ Read more
Mint
Japanese conglomerate Softbank will offload shares worth ₹600 crore in Delhivery through block deals on Wednesday, according to reports.
Softbank may also consider upsizing the option, if the deal sees a strong demand, according to reports. The block deal to offload of Delhivery shares could start on 1 March 2023.
The shares are likely to be offered at a 3-5 per cent discount to the current market price. Citigroup will be the broker for the deal. Softbank, which is the single largest public stakeholder in the logistics company, held 18.42 per cent stake as of December 2022, through its subsidiary Svf Doorbell (Cayman) Ltd.
The report of Softbank selling its stake comes at a time when last week, America's investment management firm Tiger Global Management sold 1.7 per cent stake in Delhivery through the open market for ₹414 crore. As of December-end, Tiger Global through its venture capital firm held 4.68 per cent stake in the company.