Mahindra and Mahindra Ltd (M&M) on Thursday said that a committee of its directors has approved the sale of 13.74% stake in subsidiary Mahindra Logistics Ltd through an initial public offering (IPO). The IPO will see the sale of 9.66 million shares, representing 13.74% stake, a company statement to stock exchanges said.
The shareholders selling stakes in the proposed Mahindra Logistics IPO include Normandy Holdings Ltd and Kedaara Capital Alternative Investment Fund—Kedaara Capital AIF I, which will sell 13.18% and 0.56% respectively, according to the filing. M&M’s board had approved a part stake sale in the company through an IPO on 13 June.
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.