Mahindra Logistics on Friday made a tepid debut on the bourses. The stock got listed at Rs 432, 0.69% above its issue price. The stock ended the session at Rs 429.15, 0.03% above its issue price. The initial public offer (IPO) of Mahindra Logistics was subscribed 7.65 times with investors bidding for 10.38 crore shares against 1.35 crore shares on offer. Qualified institutional buyers (QIB) bid for 5.99 crore shares against 38.41 lakh shares reserved for them, bidding 15.6 times. High net-worth individuals (HNI) bid for 59.66 lakh shares against 28.81 lakh shares. Retail investors bid for 3.77 crore shares against 67.22 lakh shares reserved. Employees bid for 2.01 lakh shares against 1.25 lakh shares reserved for them. The company is a third-party logistics provider. The company operates in supply chain management (SCM) and people transport solutions (PTS) business segments. In SCM businesses, the company offers customized and end-to-end logistics solutions and services including transportation and distribution, warehousing, in-factory logistics and other value-added services.
As of August 31, 2017, the company managed over 10.0 million square feet of warehousing space spread across the country through multi-user warehouses, built-to-suit warehouses, stockyards, network hubs and cross-docks. The company operated in-factory stores and line-feed at over 35 manufacturing locations as of August 31, 2017. The company offers services to over 200 domestic and multinational companies operating in several industry verticals in India, including automotive, engineering, consumer goods, pharmaceuticals, e-commerce, and bulk. In PTS business, the company provides technology-enabled people transportation solutions and services across India to over 100 domestic and multinational companies operating in the IT, ITeS, business process outsourcing, financial services, consulting and manufacturing industries. As of August 31, 2017, the company operated their PTS business in 12 cities and over 120 client and operating locations across India.
For the year ended March 2017, the company posted a profit after tax of Rs 46 crore against a net profit of Rs 35.96 crore in the previous financial year. In 2017, 28 companies raised Rs 44,342 crore through IPO. Listing gains and returns by newly-listed companies and also the positive sentiment in the broader market were among the reasons attributed to the trend. SBI Life, ICICI Lombard, GIC Re, BSE, HUDCO, CDSL, and Avenue Supermarts were some of the companies which completed their IPOs in the last 10 months.