Sebi approval secured, Mahindra Logistics may launch IPO by October end
The Mahindra Logistics share sale is a pure secondary offering, which will see parent Mahindra and Mahindra and PE firm Kedaara Capital selling 9.66 million shares each
Mumbai: Mahindra Logistics Ltd has received Securities and Exchange Board of India (Sebi) approval for its initial public offering (IPO), said two people aware of the development.
Mahindra Logistics filed its draft red herring prospectus with the capital markets regulator on 4 August.
“The approval came earlier last week,” said one of the two people aware of the development, requesting anonymity as he is not authorized to speak to reporters.
Mahindra Logistics had been planning to launch its IPO in October and was waiting on the approval to come by, according to the second of the two people.
“The IPO is now being planned for launch towards the month end. Reliance AMC’s IPO closes on 27 October. The Mahindra Logistics IPO will most likely open immediately after it,” he said, also requesting anonymity.
An email sent on Friday to Mahindra Logistics did not elicit any response.
The Mahindra Logistics share sale is a pure secondary offering, which will see parent Mahindra and Mahindra Ltd and private equity firm Kedaara Capital selling 9.66 million shares each. The offer will see a total stake dilution of 27.49%.
Mahindra Logistics has hired Kotak Mahindra Capital Co. Ltd and Axis Capital to manage the share sale.
In 2014, private equity firm Kedaara Capital bought a 23% stake in Mahindra Logistics for Rs200 crore.
The company 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.
For the financial year 2016-17, the company reported a revenue of Rs2,676.2 crore as against Rs2,077.1 crore in the previous year. In 2016-17, it reported a profit of Rs46 crore, compared to a profit of Rs35.9 crore in the previous financial year.
Mahindra Logistics is one of several logistics companies that plan 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 Kishore Biyani’s Future Supply Chain Solutions Ltd.
Till September, the Indian primary market witnessed 24 IPOs that have seen companies raise Rs30,853 crore, according to data from primary market tracker Prime Database.
The month of October has seen several major IPOs including those of General Insurance Corp. of India Ltd, Godrej Agrovet Ltd and Indian Energy Exchange Ltd. Reliance Nippon Life Asset Management Ltd will launch its Rs1,542 crore IPO on 25 October. In 2016, 26 companies raised Rs26,493.8 crore through the IPO route.