India: Mahindra Logistics may launch IPO by October-end

Sebi. Photo: Abhijit Bhatlekar/Mint

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.

Also Read:

India: Seven Islands Shipping eyes $100m from IPO

India: Godrej Agrovet IPO opens on 4 October

This article was first published on LiveMint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.