SoftBank Plans Fresh Block Deal to Sell $150 Million Stake in Delhivery

In a move signaling continued activity in the block deals market, SoftBank, led by Masayoshi Son, is set to sell approximately 4 percent of its stake in the prominent logistics service provider, Delhivery. The Japanese tech giant aims to raise around $150 million through this transaction, according to sources familiar with the matter, with Kotak Mahindra Capital advising on the deal. SoftBank's entity, SVF Doorbell (Cayman) Ltd, currently holds a 14.46 percent stake in Delhivery.

The block deal trend has been prevalent throughout 2023, with data from Prime Database indicating that private equity and venture capital firms have divested investments amounting to Rs 57,338 crore between January and August. This marks a notable increase from the Rs 41,051 crore recorded during the same period in the previous year.

The Delhivery stock has experienced a significant uptick of nearly 15 percent over the last six months. Notably, SoftBank had previously sold a portion of its stake in Zomato for approximately Rs 1,000 crore in October. In August, the company also offloaded shares worth Rs 940 crore in Zomato through a block deal. Additionally, SoftBank sold a 2.54 percent stake in PB Fintech, the parent company of Policybazaar, for Rs 876 crore in October.

As SoftBank continues its strategic moves in the market, the block deal landscape remains dynamic in 2023. The block deal activity, as reported by Prime Database, showcases the exit of PE and venture capital firms from investments, reaching Rs 57,338 crore between January and August, a significant surge compared to the Rs 41,051 crore recorded in the same period the previous year.

SoftBank, Delhivery, and Kotak Mahindra Capital have not provided immediate comments or responses to the reports. The industry is closely watching these developments as the block deal landscape evolves in response to market dynamics.

Editor Ashwin Mohan, who specializes in M&A, private equity, and equity capital market transactions, leads the coverage of these developments at Moneycontrol, providing insights into the ongoing activities in the business world.