Kedaara completes exit from India's Mahindra Logistics

Financial details of the exit, which according to a regulatory filing saw Kedaara sell 6.4 million shares – a 9% stake – in an open market transaction, have not been disclosed. MLL’s closing price of INR491.10 per share on June 4, the day of the transaction, implies the sale was worth about INR3.2 billion ($45.3 million). MLL was trading around INR494.20 in the afternoon of June 10.

Established as a division of Mahindra & Mahindra in 2000, MLL was demerged into a wholly owned subsidiary in 2008. The company provides logistics services – including transportation, warehousing, in-factory logistics, freight forwarding, and corporate employee transportation – to over 350 customers across a range of industries.

Kedaara committed INR2 billion to MLL in 2014, gaining a 23% stake in the firm’s debut investment. It made a partial exit in MLL’s 2017 IPO, which consisted entirely of shares from Kedaara and the parent. Each investor sold about 9.7 million shares at INR429 each.

According to its most recent annual report, MLL recorded INR32.2 billion in revenue for the year ended March 2018, up from INR25.9 billion the year before. Over the same period net profit grew from INR448 million to INR622 million.

The company expects strong business growth in the foreseeable future as demand for logistics services continues to rise in India, thanks to the booming e-commerce sector and reforms like the goods and services tax that facilitate the development of nationwide logistics networks.

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• Topics
• South Asia
• Support services
• Open market
• India
• Kedaara Capital
• Exit
• Logistics