Shares of Delhivery fell nearly 3% in early trade on February 22 after a block deal worth Rs 410 crore was made at below-market prices.

The 1.7% stake in the company changed hands at an average price of Rs 338 against the previous close of Rs 348.90. Buyers and sellers are unclear at this point.

The stock was quoted at Rs 338.60 per share on the National Stock Exchange at 9:30 am, down 2.95% from its previous close. Volume was 13 million shares, well above the 1.4 million 20-day average.

The stock has been under pressure since the company said in October 2022 that it expected moderate shipment growth for the remainder of FY23. That’s when it saw its biggest intraday drop of 18%.

In November 2022, some selling pressure from pre-IPO investors ensued as the lockup period expired. CA Swift Investments divested its 2.5% stake in the supply chain company on February 20, which was acquired by Morgan Stanley Asia (Singapore) PTE.

Paytm seller SoftBank continues to hold its 18.42 shares in Delhivery, based on the holding pattern in December. FedEx (2.87%) and Nexus Venture Partners (9.1%) have yet to sell their stakes.

The logistics company’s December quarter results did not inspire confidence. The company reported a net loss of Rs 195.7 crore, compared with Rs 127 crore a year earlier. Its operating income for October-December fell to Rs 1,823.8 crore from Rs 2,019 crore a year earlier.

However, brokerages remain bullish on the stock’s long-term growth prospects. Morgan Stanley has a target price of Rs 370 on the stock. Jefferies has a ‘buy’ call with a target price of Rs 570.

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