Mahindra Logistics Rs 830-crore IPO kicked off on Tuesday, with the issue receiving 37 per cent bids on Day 1 of the bidding process by 3.20 pm local time.
The issue received bids for 30,98,148 shares, which was 37 per cent of the total issue size of 1,35,70,143 shares. Retail individual investor quota was subscribed around 57.89 per cent, qualified institutional buyer 35 per cent and non-institutional individual investor was negligibly subscribed.
Mahindra & Mahindra and private equity investor Kedaara Capital will each sell 96.6 lakh shares through the IPO. This represents a stake of nearly 27.5 per cent. Mahindra Logistics is not selling any fresh shares.
Proceeds of the issue would go to the private equity investor, Kedaara Capital. Unlike other listed logistics companies, Mahindra Logistics operates on an asset-light model, which ensures a better return on equity.
However, its IPO valuation looks expensive compared with its peers. Given these factors, the share sale looks more suitable for investors with high risk appetite.
The book running lead managers to the issue are Kotak Mahindra Capital Company and Axis Capital. Equity shares are proposed to be listed on BSE and NSE.
Earlier this month, the company had said that Mahindra Logistics Ltd , a part of diversified Mahindra Group, has fixed a price band of Rs. 425-Rs 429 per share for its initial public offer. At the upper end of the price, the share sale would fetch little over Rs. 829 crore.
The public issue of Mahindra Logistics comprises sale of 1,93,32,346 equity shares. This includes sale of 96,66,173 shares, amounting to 13.74 per cent stake, by the parent firm Mahindra and Mahindra Ltd.
Besides, Normandy Holdings would sell 92,71,180 shares, while Kedara Capital would offload 3,94,993 scrips. Normandy Holdings is a 100 per cent subsidiary of Kedaara Capital.