India: Kedaara Capital fully exits investment in Mahindra Logistics

Homegrown private equity firm Kedaara Capital has fully exited its investment in Mahindra Logistics Ltd (MLL), the logistics and transport services arm of India’s Mahindra & Mahindra ltd, per the regulatory filings.

Kedaara’s affiliate Normandy Holdings Ltd has sold 6.4 million shares equating to about 9 per cent stake in MLL through an open market transaction, showed the bulk deal available on BSE.

The PE firm had bought a 23 per cent stake in MLL for about Rs200 crore in April 2014, marking one of the biggest deals in India’s logistics sector. It was reported to have partially exited its stake in MLL when the latter went public in October 2017.

Mahindra Logistics was set up in 2007 with a capital of Rs30 crore, and since then it has been part of the Mahindra Partners division. As of December 2018, Mahindra & Mahindra held about 58.59 per cent stake in MLL.

MLL provides logistics solutions, warehousing facilities, freight forwarding and supply chain management services. It aims to be a Rs 6,000-crore logistics services provider by 2020, according to its website.

Meanwhile, Kedaara Capital pursues control and minority investment opportunities in India, and has made 10 investments since 2014 across diversified verticals, including consumer and consumer derivatives, financial services, industrial and healthcare.

MLL is one of the exits achieved by Kedaara in recent times. In October last year, the PE firm had also fully exited its investment in Bengaluru-based packaging solutions company Manjushree Technopack. Kedaara Capital and Ladoga Holdings Ltd had jointly picked up a 24 per cent stake in the packaging company in 2015 for about $23 million.

As of October 2018, the total funds managed and advised by the Kedaara team is over $1.5 billion. Its other investments include AU Small Finance Bank, Bill Forge, Parksons Packaging, Vijaya Diagnostics among others.