Mahindra Logistics secures Sebi's approval to float IPO

Mahindra Group's logistics arm has received the go-ahead from markets regulator Sebi to garner about Rs 700 crore through an initial share-sale offering.

Mahindra Logistics had filed its draft red herring prospectus with Sebi on August 4 and obtained "observations" on October 6, which is very important for any company to float a public offer, as per the latest update with Sebi.

The public issue of Mahindra Logistics comprises sale of 1,93,32,346 equity shares. This includes the sale of 96,66,173 shares, amounting to 13.74 percent stake, by the parent firm Mahindra and Mahindra Ltd.

Besides, Normandy Holdings would sell 92,71,180 shares, while Kedara Capital would offload 3,94,993 scrips.

Normandy Holdings is a 100 percent subsidiary of Kedaara Capital.

According to merchant banking sources, the company is expected to raise Rs 700 crore through the initial public offer (IPO).

"The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges. Further, our company expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity to our shareholders," Mahindra Logistics said.

The company provides logistics solutions, warehousing, freight forwarding and supply chain services.

Kotak Mahindra Capital Company and Axis Capital will manage the company's IPO.