New Delhi: The initial public offering (IPO) of Mahindra Logistics Ltd, a unit of auto maker Mahindra and Mahindra Ltd, was subscribed 1.32 times on Wednesday, the second day of the share sale.
According to data from the stock exchanges, the portion of shares reserved for institutional investors in the Mahindra Logistics IPO saw a subscription of 76%, while those reserved for retail investors and high-net worth individuals (HNIs) were subscribed 2.17 times and 0.1 times, respectively. As of 5pm, the IPO received bids for 17,966,042 shares against the total issue size of 13,570,143 shares, according to NSE data.
Shares in the Mahindra Logistics IPO have a price band of Rs425-429 apiece. The share sale, which will close on 2 November, is a purely secondary offering, with Mahindra and Mahindra and private equity firm Kedaara Capital selling 19.33 million shares. The offer will see a total stake dilution of 27%.
Kedaara bought a 23% stake in the firm for Rs200 crore in 2014. M&M and Kedaara Capital will get Rs414.67 crore each from the share sale.
A day before the IPO, Mahindra Logistics raised Rs247.2 crore by selling shares to 15 institutional investors as part of its anchor book allocation. Institutional investors that participated in the anchor book allocation include Goldman Sachs India Ltd, Reliance Capital Trustee Co. Ltd, Aditya Birla Sun Life Trustee Pvt. Ltd, HDFC Trustee Co. Ltd and DSP Blackrock.