Mahindra Logistics Limited is end-to-end logistics solution and service provider. This is part a of Mahindra Group (M&M), one of India’s leading corporate groups with operations across several industries and countries. The logistics business of M&M was operated as a division of M&M serving the transportation and distribution, warehousing and in-factory logistics requirements of M&M. Mahindra Logistics Limited is coming up with their new issue to be launched end of October. Let me take you through the Mahindra Logistics IPO review and discuss the issue date, price, prospectus and grey market premium in this post.
About Mahindra Logistics Limited IPO:
- IPO opens on – October 31, 2017
- IPO closes on – November 2, 2017
- Face value – Rs. 10 per equity share
- Issue price – Rs. 425 to Rs. 429 per equity share.
- Issue type – Book Built Issue.
- Minimum lot – Nil.
- Minimum order quantity – Nil.
- Retail Allocation – 35%
- Issue size – 19,332,346 Equity Shares.
- Listing exchange – BSE, NSE.
- Draft prospectus – Download.
About The Company –
- Mahindra Logistics is one of India’s largest 3PL (third-party logistics) solutions providers in the Indian logistics industry.
- This 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.
- Mahindra Logistics 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 logistics solution of the company includes transportation and distribution, warehousing, in-factory logistics and value-added services to its clients.
- This company also provide 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 in 12 cities and over 120 clients.
- 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. The Supply Chain Management business is a pan-India network comprising 24 city offices and over 350 client. Supply Chain Management has a large network of over 1,000 business partners providing vehicles, warehouses and the other assets and services for the Supply Chain Management business. Key clients in Supply Chain Management 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.
- PTS or People Transport Solutions – The company also offers technological back up to transportation services throughout India. This service is offered to many IT companies in 12 cities. Some of the clients for this segment is Tech Mahindra AXISCADES and ANZ Support Services etc.
Promoters of the company :
The Promoter of the Company is Mahindra & Mahindra Limited.
Mahindra Logistics IPO Review:
Since FY 2014 to FY 2016 the company could not show sustainable growth in the profitability. The top line and bottom line both increased during that period. Only in FY 2017, the company has posted encouraging profits. The Mahindra Logistics IPO grey market premium (GMP) is quoting around Rs. 125 – Rs. 130. So far our Mahindra Logistics IPO review has a NEUTRAL view on this issue. Investors can wait till last day till the institutional application data is clear to all.