Delhivery approves capital shift and expands into drones

Delhivery, the logistics major, has announced a significant change to its capital structure. The Board of Directors has approved the reclassification of unutilised preference share capital into equity shares. This change is subject to approval by shareholders at the upcoming annual general meeting. 

Current Capital Structure 

According to the Memorandum of Association (MoA), Delhivery’s authorised share capital currently stands at INR 134.2 crore. This comprises 87.35 crore equity shares valued at INR 87.35 crore, 3 lakh preference shares worth INR 30 lakh each, and 46.60 lakh preference shares valued at INR 46.60 crore each. 

Expansion into Drone Technology 

In another major development, Delhivery has received approval from the Ministry of Corporate Affairs (MCA) to incorporate a new drone subsidiary. On July 3rd, Delhivery announced the establishment of ‘Delhivery Robotics India Private Limited,’ which will be wholly owned by the logistics company. 

Employee Stock Options and Financial Performance 

Delhivery has been actively engaging its employees through stock options. Recently, the company allocated 36,525 stock options under the Delhivery Employees Stock Option Plan 2012. In the previous month, Delhivery had allocated 11.06 lakh ESOPs 

Despite these positive developments, Delhivery reported a consolidated net loss of INR 69 crore in the fourth quarter (Q4) of the financial year 2023-24 (FY24), a significant decline from the INR 11.7 crore profit after tax (PAT) reported in the preceding quarter. The company’s operating revenue also fell by 5% quarter-on-quarter (QoQ) to INR 2,076 crore from INR 2,194.5 crore in Q3. 

Company Background and Future Prospects 

Founded in 2011 by Bhavesh Manglani, Kapil Bharati, Mohit Tandon, Sahil Barua, and Suraj Saharan, Delhivery is based in Gurugram and specializes in logistics and supply chain services. Despite recent financial challenges, the company remains optimistic about its future, particularly with its new ventures and strategic changes. 

According to a report, the Indian drone market is projected to reach $13 billion by 2030, with a compound annual growth rate (CAGR) of 21% between 2022 and 2030. This presents a significant growth opportunity for Delhivery as it diversifies its operations with the new drone subsidiary.