Mahindra Logistics files for IPO
Mumbai: Mahindra Logistics Ltd, the logistics arm of the Mahindra and Mahindra Ltd (M&M), on Friday filed the draft red herring prospectus for its proposed initial public offering (IPO).
The initial share sale, a pure secondary sale of shares, will see the Mahindra Logistics shareholders sell a total of 19.33 million shares.
M&M plans to sell 9.66 million shares, while other shareholders Normandy Holdings Ltd and Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF I are selling 9.27 million and 0.39 million shares respectively.
The offer will see a total stake dilution of 27.49%.
Mahindra Logistics has appointed Kotak Mahindra Capital Co. Ltd and Axis Capital to manager the share sale.
In 2014, private equity firm Kedaara Capital bought a 23% stake in Mahindra Logistics for Rs200 crore.
Mahindra Logistics provides services such as warehousing, transport, in-factory logistics, people logistics and freight forwarding for clients across industries such as auto and auto component manufacturing, consumer, pharmaceuticals and e-commerce.
Mahindra Logistics is one of the many logistics companies that have planned to go public.
Logistics firms that have already filed their draft red herring prospectus with the regulator include Warburg Pincus-backed Continental Warehousing (Nhava Seva) Ltd and IDFC Alternatives-backed Seaways Shipping and Logistics Ltd.
So far in 2017, the Indian primary market has witnessed 15 initial public offerings that have seen companies raising Rs12,584 crore, according to data from primary market tracker Prime Database. Some of the IPOs this calendar year include Central Depository Services (India) Ltd that was subscribed 169.45 times and AU Small Finance Bank that was subscribed 53.60 times.
In 2016, the Indian primary market saw 26 companies raising Rs26,493.8 crore through the IPO route, data shows.