Kedaara to part-exit Mahindra Logistics through India IPO

The private equity firm will sell about 9.7 million shares in the offering, while the parent will offload the same amount, according to a filing. The combined sale represents about a 27.5% stake in MLL. No new shares will be issued, and pricing for the shares has not been announced, though Indian media reports have estimated the IPO’s size at up to INR7 billion ($110 million).

MLL was Kedaara’s first investment: the firm paid INR2 billion (then $32.7 million) in 2014 for a 23% stake. The company was set up in 2000 to serve the transportation needs of Mahindra Group’s automotive business and went on to serve third-party clients across the consumer, telecom, financial services IT and infrastructure sectors. It clients include Volkswagen India, Vodafone India, Ashok Leyland and Siemens.

According to Mahindra & Mahindra’s latest annual report, MLL saw INR20 billion in gross turnover for the year ended March 2016, up from INR19 billion in 2015. Over the same period, net profit grew from INR373 million to INR411 million. For the overall group, revenue grew from INR720 billion to INR786 billion, while net profit rose from INR31 billion to INR32 billion.

MLL joins several other PE-backed Indian logistics companies that have pursued IPOs in recent years, such as Seaways Shipping & Logistics and Continental Warehousing. The industry has attracted increased PE attention in recent years on the back of government incentives and macroeconomic drivers to modernize the country's supply chains.

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• Topics
• South Asia
• Support services
• IPO
• India
• Kedaara Capital
• Logistics
• Exit