Logistics major Delhivery is likely to get added to the FTSE All-World Index by December and the MSCI India index by May 2023, said analyst Brian Freitas of Periscope Analytics, who publishes on Smartkarma.
The stock, however, is unlikely to get added to the benchmark Nifty and Sensex indices anytime soon, he added.
The Softbank-backed firm’s Rs 5,235-crore ($685-million) initial public offering (IPO) opens for subscription on May 11 and closes on May 13. The price band for the issue is Rs 462-468 per share. At the top-end, Delhivery will be valued at Rs 35,284 crore ($4.6 billion).
“Listing after mid-May, the earliest that Delhivery will be eligible for inclusion in the FTSE indices is at the December quarterly index review (QIR) where data from 11 November will be used to compute the free float. To be included in the FTSE All-World index, Delhivery will need to have a market cap of $3.95 billion and an investable market cap of $463 million,” said Brian.
“The earliest that Delhivery will have a decent shot at inclusion in the MSCI India Index is at the February 2023 QIR, though inclusion at the May 2023 SAIR has a higher probability,” he added.
Delhivery will fail to meet the threshold market cap required to fast-track entry into FTSE and MSCI indices. For MSCI index inclusion via fast entry, a stock would be required to have full market cap at $8.71 billion and free float market cap at $4.36 billion, as per current market dynamics.
Delhivery’s IPO will be the second-largest this year after LIC. Its offering will also test investor appetite for startup and tech IPOs.