Mahindra Logistics IPO

Mahindra Logistics IPO

Mahindra Logistics Logo

Business description from prospectus - Mahindra Logistics is one of India’s largest 3PL (third-party logistics) solutions providers in the Indian logistics industry which was estimated at INR6.40 trillion in Fiscal 2017, according to the CRISIL Report. The company follows “asset-light” business model which assets necessary for its operations such as vehicles and warehouses are owned or provided by a large network of business partners. The technology enabled asset-light business model allows for scalability of services as well as the flexibility to develop and offer customized logistics solutions across a diverse set of industries.

The company operates in two distinct business segments:

Supply Chain Management (SCM) – This segment offers customized and end-to-end logistics solutions and services including transportation and distribution, warehousing, in-factory logistics and value added services to clients. It operate the SCM business through a pan-India network comprising 24 city offices and over 350 client and operating locations as at May 31, 2017. It has a large network of over 1,000 business partners providing vehicles, warehouses and the other assets and services for the SCM business. Key clients in this business are Volkswagen India Private Limited, Vodafone India Limited, Thermax Limited, JSW Steel Limited, Ashok Leyland Limited, Siemens Limited, Bosch Limited, BMW India Private Limited, 3M India Limited, and Mercedes-Benz India Private Limited.

People Transport Solutions (PTS) – This segment 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. It offers services through a fleet of vehicles provided by a large network of over 500 business partners. As at May 31, 2017, the company operated PTS business in 12 cities and over 120 client operating locations across India. Key clients in India for the PTS business include Tech Mahindra Limited, AXISCADES Engineering Technologies Limited and ANZ Support Services India Private Limited.

Promoters of Mahindra Logistics - Mahindra & Mahindra Limited

Mahindra Logistics IPO details
Subscription Dates31 Oct - 2 Nov 2017
Price BandINR425 - 429 per share
Fresh issueNil
Offer For Sale19,332,346 shares (INR821.62 - 829.36 crore)
Total IPO size19,332,346 shares (INR821.62 - 829.36 crore)
Minimum bid (lot size)34 shares
Face Value INR10 per share
Retail Allocation35%
Listing OnNSE, BSE
Mahindra Logistics' financial performance (in INR crore)
FY2013FY2014FY2015FY2016FY2017
Total revenue1,535.51,757.01,939.62,077.12,676.3
Total expenses1,499.41,702.71,880.32,021.22,608.4
Profit after tax24.436.638.536.046.1

FY2013, FY2014 figures based on Indian GAAP, subsequent years based on Ind AS

Mahindra Logistics Contact Details

Mahindra Logistics Limited 
1A & 1B, 4th Floor, Techniplex 1
Techniplex Complex, Veer Savarkar Flyover
Goregaon (W), Mumbai – 400062

Phone: +91 22 2871 6800
Fax: 
+91 22 2490 0833
Email:
[email protected]
Website: www.mahindralogistics.com

Registrar of Mahindra Logistics IPO

Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai - 400 083

Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email[email protected]
Website: http://www.linkintime.co.in

Valuation of Mahindra Logistics (Based on latest FY)

Earnings Per Share (EPS): INR6.62

Price/Earnings (P/E) ratio: 64.20 - 64.80

Return on Net Worth (RONW): 13.11%

Net Asset Value (NAV): INR51.13 per share

Mahindra Logistics IPO Subscription Details

CategoryShares offeredSubscription (no. of times, at 5 PM)
Day 1Day 2Day 3
QIB3,841,4690.35 0.7615.6
NII2,881,1020.02 0.111.87
Retail6,722,5720.752.185.60
Employees125,0000.290.921.61
Total19,332,3460.481.327.65

Mahindra Logistics IPO Allotment Status

Mahindra Logistics IPO allotment status is now available on Link Intime's website. Click on this link to get allotment status.

LISTING PERFORMANCE OF Mahindra Logistics

IPO Opening Date: 31 October 2017

IPO Closing Date: 2 November 2017

Finalisation of Basis of Allotment: 8 November 2017

Initiation of refunds: 9 November 2017

Transfer of shares to demat accounts: 9 November 2017

Listing Date: 10 November 2017

Listing Price on NSE: INR429 per share (no change from IPO price)

Closing Price on NSE: INR429.5 per share (up 0.1% from IPO price)

23 COMMENTS

    • Kya Chelaniji, you did not lose money. Sab theek to hai. It is a good company, will grow and make your rich. Remain invested 🙂

  1. It seems people are looking at MLL as any other logistics company. Whereas this company works on different model. They take a contract and go into back to back agreement with the vendors adding a management fees of 10%. There gross margin for SCM business is around 12-15% and for PTS business is 10-12%, which is decent. Because of their business model they don’t get into troubles or penalties on SLAs as it is passed on to vendors as back to back contract. These people just manage the show with no investment. Their only investment in a contract is human resources and too as FTCs.

  2. Mahindra Logistics Ltd, the logistics arm of automobile maker Mahindra and Mahindra Ltd (M&M), on Monday said it has raised Rs247.2 crore by selling shares to institutional investors as part of its anchor book allocation, a day before its initial public offering (IPO) opens.

    Shares were allocated to 15 investors at Rs429 apiece, the upper end of the price band of Rs425-429 for the IPO. The Rs829.36 crore IPO will open on 31 October and close on 2 November. Institutional investors that participated in the anchor book allocation include Goldman Sachs India Ltd, Reliance Capital Trustee Co. Ltd, Aditya Birla Sun Life Trustee Pvt. Ltd, HDFC Trustee Co. Ltd and DSP Blackrock among others.

    The share sale is a purely secondary offering, which will see parent M&M and private equity firm Kedaara Capital sell 19.33 million shares. The offer will see a total stake dilution of 27%. M&M, which holds 72.36% in Mahindra Logistics, will sell 9.66 million shares worth Rs414.67 crore; Normandy and Kedaara will sell shares worth Rs397.73 crore and Rs16.94 crore, respectively. Kedaara bought a 23% stake for Rs200 crore in 2014.

    Mahindra Logistics has hired Kotak Mahindra Capital Co. Ltd and Axis Capital to manage the share sale.

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