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Shares of logistics and supply-chain company Delhivery declined the most since listing after 32.4 lakh shares or 0.4 percent of the company's total equity exchanged hands at an average price of Rs 394.

Buyers and sellers of the Rs 131.7 crore transaction are unclear.

Shares are down another 17 percent on Friday after dropping 15 percent on Thursday when the company issued a weak quarterly business update.

With today's drop, shares have now declined over 30 percent in the last two trading sessions.

Issuing its quarterly business update, the courier company said that market sentiment between July-September remained unchanged when compared to the April-June quarter.

It attributed the subdued outlook to weak discretionary spending from customers due to high inflation.

The company further stated that average user spends and the total number of active shoppers remained flat or declined during the ongoing festive season.

Despite the challenging market conditions, Delhivery said that its market positioning is strong due to the structural cost advantages, network size, and capacity investments that it has made.

Express parcel volumes picked up during the end of the quarter, especially in the heavy goods category.

The company remains confident of the business being on the path to recovery, stating that freight tonnage handling witnessed growth in the high teens when compared to the June quarter.

A majority of Delhivery and SpotOn’s pre-integration customers have restarted shipping through the integrated network, according to the filing.

Cross-Border business showed steady growth on a year-on-year basis despite a global slowdown and a decline in yields for both air and ocean freight.

Shares of Delhivery are trading 15.5 percent lower at Rs 398 as of 11 AM. The stock is now trading below its IPO price of Rs 487.

(Edited by : Rukmani Krishna)

First Published:Oct 20, 2022 1:08 PM IST