Mahindra Logistics' IPO to hit markets soon

Following the market regulators SEBI's approval for Mahindra Logistics' Rs. 700 crore IPO, the company is expected to hit the equity market by the end of this month.

Bearing in mind the upbeat mood in the equity markets this year, there has seen constant stream of IPO being floated by parents companies to list their arms on the exchange. M&M Group's arm had filed the draft red herring prospectus (DRHP) with SEBI in August. The initial public offering (IPO) would see parent company Mahindra and Mahindra, Normandy Holdings and Kedaara Capital sell shares of the company.

The IPO comprises sale of 1,93,32,346 equity shares, which includes 96,66,173 shares, equivalent to 13.74 per cent stake of M&M, according to the draft papers. While Normandy Holdings would offload 92,71,180 shares and Kedara Capital would sell 3,94,993 scrips.

The objectives of the offer are to achieve the benefits of listing the equity shares and to enhance the company's visibility and brand image. The offer will also provide liquidity to its shareholders, stated Mahindra Logistics in its filing.

As per the DRHP, the company reported a consolidated net profit of Rs 46.06 crore for 2016-17 on total revenue of Rs 2,676.22 crore.

Mahindra Logistics was set up in 2007 and is engaged in logistics solutions, warehousing, freight forwarding and supply chain management services.