About the Company:
Mahindra Logistics is one of India’s largest 3PL solutions providers in the Indian logistics industry.
Company operates in two distinct business segments, supply chain management (“SCM”) and corporate people transport solutions (“PTS”).
Company’s SCM and PTS businesses contributed 89.89% and 10.11%, respectively, to the total revenue from operations.
Entities within the Mahindra Group together constituted the largest client group and contributed 55.45% to the total revenue from operations.
SCM (Supply Chain Management) business:
Company offers customized and end-to-end logistics solutions and services including transportation and distribution, warehousing, in-factory logistics and value added services to our clients.
Company operate the SCM business through a pan-India network comprising 24 city offices and over 350 client and operating locations.
Company has a large network of over 1,000 business partners providing them vehicles, warehouses and the other assets and services for their SCM business.
Company has managed over 10.0 million square feet of warehousing space spread across pan-India network of multi-user warehouses, built-to-suit warehouses,stockyards, network hubs and cross-docks.
Serve over 200 domestic and multinational companies operating in several industry verticals in India,including automotive, engineering, consumer goods, pharmaceuticals, e-commerce and bulk.
SCM business has won several prestigious awards:
- “3PL Achiever of the Year 2017” award by Global Logistics Excellence Awards.
- “CII Supply Chain and Logistics Excellence (SCALE) Award 2017”.
- “3PL Company of the Year 2016” award by Logistics Asia Awards.
Certain key clients for the SCM business include:
- Volkswagen India Private Limited.
- Vodafone India Limited.
- Thermax Limited.
- JSW Steel Limited.
- Ashok Leyland Limited.
- Siemens Limited.
- Bosch Limited.
- BMW India Private Limited.
- 3M India Limited.
- Mercedes-Benz India Private Limited.
PTS business (People Transport Solutions Business):
Company provide technology-enabled people transportation solutions and services across India to over 100 domestic and multinational companies operating in the IT, ITeS, business process outsourcing, financial services, consulting and manufacturing industries.
Company offers their services through a fleet of vehicles provided by a large network of over 500 business partners.
Company’s subsidiary, 2X2 Logistics, provides logistics and transportation services to OEMs to carry finished automobiles from the manufacturing locations to stockyards or directly to the distributors through specially designed vehicles.
Company’s other subsidiary, Lords Freight provides international freight forwarding services for exports and imports, customs brokerage operations, project cargo services and charters.
As on August 31, 2017, Company operated the PTS business in 12 cities and over 120 client and operating locations across India.
key clients in India for the PTS business includes:
- Tech Mahindra Limited.
- AXISCADES Engineering Technologies Limited
- ANZ Support Services India Private Limited.
Company’s Subsidiaries:
- 2X2 Logistics Private Limited (“2X2 Logistics”).
- Lords Freight (India) Private Limited (“Lords”).
Management Team:
- Mr.Zhooben Bhiwandiwala (Designation: Chairman and Non-Executive Director)
- Mr.Parag Shah (Designation: Non-Executive Director)
- Mr.K. Chandrasekar (Designation: Non-Executive Director)
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoter | ||
| Mahindra & Mahindra Limited | 72.36 | 58.77 |
| Total | 72.36 | 58.77% |
Peer Group Comparison:
None of the listed companies in India have a business model and asset structure similar to Mahindra Logistics, So we cannot make any comparison.
Positives for the Company:
- Experienced management team with strong domain expertise.
- An “asset-light” business model which allows flexibility and scalability in operations and high capital efficiency.
- Customized, technology driven logistics solutions.
- Integrated, end-to-end logistics services and solutions.
- Mahindra brand and support from the Mahindra Group.
- Presence across diverse industry verticals with long-standing client relationships.
- Company has a technology enabled, “asset-light” business model which allows for scalability of services as well as the flexibility to develop and offer customized logistics solutions across a diverse set of industries.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th June 17 |
|---|---|---|---|---|---|---|
| Revenue | 1535.5 | 1756.96 | 1939.55 | 2077.12 | 2676.25 | 854.45 |
| Net Profit | 24.42 | 36.61 | 38.5 | 35.96 | 46.06 | 15.12 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 31st October 2017 |
| Issue Closes on:. | 2nd November 2017 |
| Issue Price Band | Rs.425 – 429 |
| Face Value | Rs.10 |
| Minimum Lot | 34 |
| Minimum Investment | Rs.14,586 |
| Retail Allocation | 35% |
| Issue Constitutes | 27.17% |
| Issue Size | Rs.829.35 cr |
| Market Cap | Rs.3051.98 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,93,32,346 |
| Equity Shares Prior | 7,11,41,924 |
| Equity Shares after the issue | 7,11,41,924 |
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Important Dates:
| Finalization of Basis of Alottment | on or Before 8th November 2017 |
| Initiation of Refunds | on or Before 9th November 2017 |
| Credit of Equity Shares: | on or Before 9th November 2017 |
| Listing Date: | on or Before 10th November 2017 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 05:55 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 38,41,469 | 0.35 | 0.77 | 15.6 |
| NII | 28,81,102 | 0.028 | 0.109 | 2.07 |
| Retail | 67,22,572 | 0.64 | 2.177 | 6.1 |
| Employee | 1,25,000 | 0.273 | 0.921 | 1.94 |
| TOTAL | 1,35,70,143 | 0.43 | 1.33 | 7.91 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 09/11/17 | Mahindra Logistics | 425 – 429 | 28 – 33 | 215 – 227 |
Note: Grey Market Premium is just an indicative price prevailing in the market ,However it keeps on changing on daily basis based on various conditions in the market.(So don’t apply by just looking at GMP)
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 6.62 | 64.80 | 13.11% | 51.13 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
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| Company Contact Info: |
|---|
| Mahindra Logistics Limited Mahindra Towers P. K. Kurne Chowk, Worli Mumbai 400 018 Tel: +91 22 2490 1441 Website: www.mahindralogistics.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1 st floor, 247 Park, L B S Marg, Vikhroli West, Mumbai 400 083 Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 E-mail: mahindralogistics.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Websitehttps://linkintime.co.in/PublicIssues/ |
