The initial public offer (IPO) of Mahindra Logistics which began on Tuesday was subscribed by 0.48 times with investors bidding for 65.75 lakh shares against 1.35 crore shares on offer.
The initial public offer (IPO) of Mahindra Logistics which began on Tuesday was subscribed by 0.48 times with investors bidding for 65.75 lakh shares against 1.35 crore shares on offer. Qualified institutional buyers ( QIB) bid for 13.38 lakh against 38.41 lakh shares reserved for them, bidding 0.35 times. High net worth individuals (HNIs) bid for 95,404 shares against 28.81 lakh shares. Retail investors bid for 51.05 lakh shares against 67.22 lakh shares reserved. Employees bid for 36,312 shares against 1.25 lakh shares reserved for them. Mahindra Logistics is aiming to raise Rs 829.35 crore from its IPO. The company has set a price band of Rs 425-429 per share for its IPO. Bids can be made for a minimum of 34 equity shares and in multiples of 34 shares thereafter. The company has proposed an offer for sale (OFS) up to 1.93 crore equity shares. This includes an offer for sale of up to 96.66 lakh shares by Mahindra & Mahindra (M&M), 92.71 lakh shares of Normandy Holdings and up to 3.95 lakh equity shares by Kedaara Capital Alternative Investment Fund (AIF). The offer includes a reservation of up to 1.25 lakh equity shares for subscription by eligible employees with a discount of Rs 42 per share. The company will not receive any proceeds from the Offer.
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 customised 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 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 its services to over 200 domestic and multinational companies operating in several industry verticals. 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 `46 crore, against a net profit of `35.96 crore in the previous financial year.