India: M&M gets go-ahead to sell 13.74% stake in Mahindra Logistics IPO

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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.

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This article was first published on LiveMint.com

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

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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.