MAHINDRA LOGISTICS GETS SEBI NOD FOR LAUNCHING IPO
MUMBAI: Mahindra Logistics Ltd has received Securities and Exchange Board of India (Sebi)’s approval for its initial public offering, said two people aware of the development.
Mahindra Logistics filed its draft red herring prospectus with the capital markets regulator on August 4.
“The approval came earlier last week,” said one of the two people aware of the development, requesting anonymity as he is not authorised to speak to reporters.
Mahindra Logistics had been planning to launch its IPO in the month of October and was waiting on the approval to come by, according to the second person cited above.
“The IPO is now being planned for launch towards the month end. Reliance AMC’s IPO closes on October 27. The Mahindra Logistics IPO will is most likely open immediately after it,” he said, also requesting anonymity. An email sent on Friday to Mahindra Logistics did not elicit any response.
The Mahindra Logistics share sale is a pure secondary offering, which will see parent Mahindra and Mahindra Ltd and private equity firm Kedaara Capital selling 9.66 million shares each. The offer will see a total stake dilution of 27.49%.
In 2014, private equity firm Kedaara Capital bought a 23% stake in Mahindra Logistics for ₹200 crore.
The firm 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. For the financial year 2016-17, the company reported a revenue of ₹2,676.2 crore as against ₹2,077.1 crore in the previous year. It reported a profit of ₹46 crore, compared to a profit of ₹35.9 crore in the previous fiscal.