Mahindra Logistics IPO oversubscribed 6 times on last day; institutions bid 16 times

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Updated: November 2, 2017 5:27:30 PM

The IPO of Mahindra Logistics which opened for bidding on Tuesday was oversubscribed 6 times on the last day of bidding.

The IPO of Mahindra Logistics doesn’t contain fresh issue of equity shares. (Image: Company’s Website)

The IPO (initial public offering) of Mahindra Logistics which opened for bidding on Tuesday was oversubscribed over 6 times on the last day of bidding. The total subscription was at 7.65 times. Mahindra Logistics is a third-party logistics service provider and was aiming to raise around Rs 829.35 crore at the upper end of the price band. The public offer of Mahindra Logistics was heavily subscribed by QIB (qualified institutional buyers) followed by retail investors. The shares reserved for QIB category was subscribed 15.61 times, the quantum allocated to NIIs (non-institutional investors) was subscribed 2.07 times, while the portion set aside for retail investors got subscribed 5.62 times on the second day of bidding. The bids received by the employee category stood at 1.6 times.

The IPO closed today. Mahindra Logistics is the seventh Mahindra Group brand to enter the stock market. Shares of Mahindra Logistics have a P/E multiple of 65.2 times which is calculated on basic EPS (earnings per share) for the year ended 31 March 2017. The IPO of Mahindra Logistics doesn’t contain fresh issue of equity shares. The public offer is based on 100% share sale through the OFS (offer for sale) route from its existing shareholders totalling 1.93 crore equity shares of face value of Rs 10 each.

Three promoters are selling a sizeable portion of their shareholding through OFS route. The OFS include 96.66 lakh shares by Mahindra and Mahindra, 92.71 lakh shares by Normandy Holdings and up to 3.95 lakh equity shares by Kedaara Capital Alternative Investment Fund (AIF). Also, 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 floor price is set at 42.5 times and the cap price is set at 42.9 times the face value. Kotak Mahindra Capital Company Limited and Axis Capital Limited are the book running lead managers while Link Intime India Private Limited is the registrar to the issue. Out of total issue size of 1.93 crore shares, 38.41 lakh shares are allocated for QIBs; 57.62 lakh shares are reserved for anchor investors; 28.81 lakh shares are blocked for NIIs while 67.22 lakh shares are there for retail investors.

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