Mumbai : The initial public offering of Mahindra Logistics Ltd will open for subscription on October 31 and close on November 2. The price band of each share will be Rs 425-429 for its 19.3-million-share public offer.
The public offer is entirely an offer for sale of 9.67 million shares by promoter M&M, 9.27 million shares by Normandy Holdings Ltd, and 3,94,993 shares by Kedaara Capital Alternative Investment Fund. Currently, M&M holds 73.19 per cent stake in the subsidiary that will come down to 59.45 per cent after the offer. The company’s shares are valued at a price-to-earnings multiple of 63.43 times its 2016-17 (Apr-Mar) consolidated earnings at the lower end of the price band, and 64.03 times at the upper end, reports Cogencis.
The company is engaged in the business of supply chain management, including transportation, distribution, and warehousing. It also operates transport services through a fleet of vehicles provided by a network of over 500 business partners.
Mahindra Logistics will not receive any proceeds from the offer as the entire offering is an offer for sale. Kotak Mahindra Capital Co Ltd and Axis Capital Ltd are the book running lead managers to the issue.
