The initial public offer (IPO) of Mahindra Logistics was on Thursday, the concluding day of the offer, subscribed by 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. Mahindra Logistics is aiming to raise around Rs 829.35 crore from its initial price offering (IPO). The company had 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 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 its 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 R46 crore, against a net profit of R35.96 crore in the previous financial year. In 2017, 28 companies raised R44,342 crore through IPO. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. SBI Life, ICICI Lombard, GIC Re, BSE, HUDCO, CDSL, and Avenue Supermarts are some of the companies who completed their IPO in the last ten months.