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: [email protected]
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: [email protected]
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)
Pricing will be around 350, too high for logistcs service provider.
That’s the trend in IPOs, leave nothing for investors. IEX had a bad listing and just see what happens to GIC tomorrow.
Is there any changes of recovery IEX and GIC ??
And how much time it may take ???
Price at 429, invest at your own risk. Investing in it will be like harming yourself with an axe.
Very high value. Not interest in this ipo
GIC totally disappointed the investors.
zero grey market premium
will list at discount
the govt managed ipo must be undescribed one
then these burocratic jokers will not play with investors money
AVOID
AVOID
AVOID
Very costly ipo and no cash on table for investors
its give more than 10 percent profit…. buy it…. sure shot
Avoid it’s too costly
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.
What can I do m&m ipo? If do or not do?gain or no gain
Avoid this IPO Khadim is better
I don’t know what do they think of retail investors cash rich or total fools
5% to 10% upside this ipo in listing. So invest.
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.
Alotment link is not working
I just checked it opened perfectly fine. But no allotment!
Tomorrow Listing at 451 Rs
Tomorrow Listing at 464
Ridiculous!!! I invested to lose my money. Even Mahindra Group couldn’t give me profit
Kya Chelaniji, you did not lose money. Sab theek to hai. It is a good company, will grow and make your rich. Remain invested 🙂