Mahindra group, Kedaara to sell stake in Mahindra Logistics in
The Mahindra group and private equity firm Kedaara Capital will be divesting 13.5 per cent of their respective holding in Mahindra Logistics' (MLL) Rs 830- crore initial public offering (IPO), officials said today.
The diversified conglomerate will continue to hold over 61 per cent of the company after the share sale as well, they said.
"Both Mahindras and Kedaara are selling 13.5 per cent each to the public," MLL chief financial officer Nikhil Nayak told reporters here.
The company had yesterday announced a price band of Rs 425-429 per equity share as part of the IPO, which will hit the market on October 30 and remain open for subscription till November 2.
It has been over a decade since the Mahendras listed a company. MLL, which started out as a supply chain management division for the auto major, has been incubated at its venture incubation arm Mahindra Partners.
The company today said it had registered a net profit of Rs 60 crore on a Rs 2,600 crore revenue in FY17.
In the June quarter, it posted a profit of Rs 17.6 crore on a Rs 852-crore revenue.
It had a cash of Rs 120 crore and a zero debt at the company level, Nayak said, adding two of its subsidiaries where it has a majority ownership have outstanding loans.
The issue of MLL comprises sale of 1,93,32,346 shares, including offloading of 96,66,173 shares -- amounting to 13.74 per cent stake -- by the parent firm Mahindra and Mahindra.
Besides, Normandy Holdings would sell 92,71,180 shares, while Kedaara Capital would offload 3,94,993 scrips.
Normandy Holdings is a 100 per cent subsidiary of Kedaara Capital.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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