The third-party logistics (3PL) solutions provider will offer 19.33 million shares in an initial public offering for an expected return of $107 million, .
Warehousing, freight forwarding and supply chain logistics firm Mahindra Logistics has been approved by the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).
Mahindras Group’s logistics arm aims to raise Rs 700 crore (U.S. $107 million) through an initial share-sale offering. The public issue includes 19.33 million shares, which in turn includes the sale of 9.6 million shares by the parent firm Mahindra and Mahindra Ltd, while other shareholders Normandy Holdings Ltd and Kedaara Capital Alternative Investment Fund will sell 9.27 million and 390,000 shares, respectively. The offer will see a total stake dilution of 27.29 percent.
“The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges. Further, our company expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity to our shareholders,” said Mahindra Logistics, according to a report from The Economic Times.
Kotak Mahindra Capital Co. and Axis Capital will manage the company’s IPO, The Economic Times reported.
Mahinra Logistics operates as a 3PL solutions provider in the Indian logistics industry. The company promotes its “asset-light” business model which allows for “scalability of services as well as the flexibility to develop and offer customized logistics solutions across a diverse set of industries.” The firm operates in two distinct business segments: Supply Chain Management (SCM) and corporate People Transport Solutions (PTS).
Indian regulators approve Mahindra Logistics IPO
