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 Dates 31 Oct - 2 Nov 2017
Price Band INR425 - 429 per share
Fresh issue Nil
Offer For Sale 19,332,346 shares (INR821.62 - 829.36 crore)
Total IPO size 19,332,346 shares (INR821.62 - 829.36 crore)
Minimum bid (lot size) 34 shares
Face Value  INR10 per share
Retail Allocation 35%
Listing On NSE, BSE
Mahindra Logistics' financial performance (in INR crore)
FY2013 FY2014 FY2015 FY2016 FY2017
Total revenue 1,535.5 1,757.0 1,939.6 2,077.1 2,676.3
Total expenses 1,499.4 1,702.7 1,880.3 2,021.2 2,608.4
Profit after tax 24.4 36.6 38.5 36.0 46.1

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

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:
cfo.mll@mahindra.com
Website: www.mahindralogistics.com

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: mahindralogistics.ipo@linkintime.co.in
Website: http://www.linkintime.co.in

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

Category Shares offered Subscription (no. of times, at 5 PM)
Day 1 Day 2 Day 3
QIB 3,841,469 0.35  0.76 15.6
NII 2,881,102 0.02  0.11 1.87
Retail 6,722,572 0.75 2.18 5.60
Employees 125,000 0.29 0.92 1.61
Total 19,332,346 0.48 1.32 7.65

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

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)

Mahindra Logistics IPO
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23 thoughts on “Mahindra Logistics IPO

  • November 10, 2017 at 10:19 AM
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    Ridiculous!!! I invested to lose my money. Even Mahindra Group couldn’t give me profit

    Reply
    • November 10, 2017 at 5:57 PM
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      Kya Chelaniji, you did not lose money. Sab theek to hai. It is a good company, will grow and make your rich. Remain invested 🙂

      Reply
  • November 9, 2017 at 8:40 PM
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    Tomorrow Listing at 464

    Reply
  • November 9, 2017 at 8:37 PM
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    Tomorrow Listing at 451 Rs

    Reply
  • November 8, 2017 at 2:15 PM
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    Alotment link is not working

    Reply
    • November 8, 2017 at 4:02 PM
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      I just checked it opened perfectly fine. But no allotment!

      Reply
  • November 2, 2017 at 1:34 PM
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    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.

    Reply
  • November 2, 2017 at 12:21 PM
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    5% to 10% upside this ipo in listing. So invest.

    Reply
  • November 1, 2017 at 5:33 PM
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    I don’t know what do they think of retail investors cash rich or total fools

    Reply
  • November 1, 2017 at 5:13 PM
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    What can I do m&m ipo? If do or not do?gain or no gain

    Reply
    • November 1, 2017 at 5:34 PM
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      Avoid this IPO Khadim is better

      Reply
  • October 31, 2017 at 10:50 AM
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    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.

    Reply
  • October 31, 2017 at 10:39 AM
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    its give more than 10 percent profit…. buy it…. sure shot

    Reply
    • November 1, 2017 at 5:31 PM
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      Avoid it’s too costly

      Reply
  • October 29, 2017 at 8:28 PM
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    AVOID
    AVOID
    AVOID
    Very costly ipo and no cash on table for investors

    Reply
  • October 27, 2017 at 10:24 PM
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    the govt managed ipo must be undescribed one

    then these burocratic jokers will not play with investors money

    Reply
  • October 27, 2017 at 10:21 PM
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    zero grey market premium

    will list at discount

    Reply
  • October 25, 2017 at 4:07 PM
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    GIC totally disappointed the investors.

    Reply
  • October 24, 2017 at 1:07 PM
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    Very high value. Not interest in this ipo

    Reply
  • October 24, 2017 at 9:58 AM
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    Price at 429, invest at your own risk. Investing in it will be like harming yourself with an axe.

    Reply
  • October 22, 2017 at 5:58 PM
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    Pricing will be around 350, too high for logistcs service provider.

    Reply
    • October 23, 2017 at 8:21 PM
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      That’s the trend in IPOs, leave nothing for investors. IEX had a bad listing and just see what happens to GIC tomorrow.

      Reply
      • November 22, 2017 at 8:16 AM
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        Is there any changes of recovery IEX and GIC ??
        And how much time it may take ???

        Reply

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