Mahindra Logistics IPO subscribed 48% on the first day

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Mumbai: The Rs829.36 crore initial public offering (IPO) of Mahindra Logistics Ltd, the logistics arm of automobile maker Mahindra and Mahindra Ltd (M&M), was subscribed 48% on Tuesday, the first day of the share sale.

According to data from stock exchanges, as of 5pm, the portion of shares reserved for institutional investors saw a subscription of 35%, while the portions reserved for retail investors and high net-worth individuals were subscribed 76% and 3%, respectively.

Mahindra Logistics has priced its shares in a price band of Rs425-429 apiece. The IPO will close on 2 November.

The share sale is a purely secondary offering, with parent Mahindra and Mahindra and private equity (PE) firm Kedaara Capital selling 19.33 million shares.

The offer will see a total stake dilution of 27%. Kedaara bought a 23% stake in the company for Rs200 crore in 2014. M&M and Kedaara Capital will get Rs414.67 crore each from the share sale.

On Tuesday, Mahindra Logistics raised Rs247.2 crore by selling shares to 15 institutional investors as part of its anchor book allocation. 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.