Mahindra Logistics Share price and Fundamental Analysis

Company History

Mahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners, the USD 1 billion private equity division of the USD 20.7 billion Mahindra Group. MLL is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and people transport solutions. MLL serves over 350 corporate customers across various industries like Automobile, Engineering, Consumer Goods and E-commerce. The Company pursues en ' asset-light' business model, providing customised and technology enabled solutions that span across the supply chain and people transport operations.

Mahindra Logistics Limited was incorporated as a Public Limited Company on 24th August, 2007. The Company was granted the Certificate for Commencement of Business on 15th October, 2007 by the Registrar of Companies.

The Promoter, Mahindra & Mahindra Limited, through its logistics division, Mahindra Logistics - undertook the business of providing logistics solutions, warehousing, freight forwarding and supply chain services. Pursuant to a Business Transfer Agreement dated September 11, 2008 between the Promoter and Mahindra Logistics Limited, the entire Logistics Business was transferred to Mahindra Logistics Limited. Subsequently, the Logistics Business has since then been undertaken by Mahindra Logistics Limited and its Subsidiaries.

In 2014, Kedaara Capital Alternative Investment Fund - Kedaara Capital AIF 1 and Normandy Holdings Limited, a wholly owned subsidiary of Kedaara Capital I, made investment in the company. During the year under review, Mahindra Logistics Limited entered e-commerce sector by starting operations for one of India's leading ecommerce companies.

Mahindra Logistics Limited entered into a joint venture with IVC Logistics Limited pursuant to shareholders' agreement dated August 28, 2014 to form 2X2 Logistics. 2X2 Logistics offers pan-India transportation services for finished automobiles.

In 2015, the company appointed a reputed strategic consultancy firm to help with a business transformation exercise. Mahindra Logistics Limited acquired shares aggregating to 60% of the paid-up share capital of Lords Freight (India) Private Limited for Rs 8 crore pursuant to a share subscription and share purchase agreement dated July 14, 2014. Lords specializes in international freight forwarding.

In 2016, the company entered into business contract with one of the largest steel producers in India. During the financial year ended 31 March 2017, the company achieved Rs 2500 crore of revenue from operations.

The company came out with an initial public offer (IPO) during the period from 31 October 2017 to 2 November 2017. The IPO comprised of offer for sale of a total of 1.93 crore shares by selling shareholders. Promoter Mahindra & Mahindra offloaded 96.66 lakh shares through the IPO. Two institutional investors viz. Normandy Holdings Limited and Kedaara Capital Alternative Investment Fund - Kedaara Capital AIF 1 offloaded 92.71 lakh shares and 3.95 lakh shares respectively. There was no fresh issue of shares by the company. The stock debuted at Rs 432 on BSE on 10 November 2017, a premium of 0.69% compared to IPO price of Rs 429 per share.

The Board of Directors of Mahindra Logistics at its Meeting held on 2 August 2018 approved additional investment in Lords Freight (India) Private Limited, a Subsidiary Company (Lords) by way of purchase of 2.05 lakh equity shares of Lords (representing 8.69% of equity share capital of Lords) from the existing shareholders of Lords. Consequently, Share Purchase Agreement and other related documents have been executed between the company and respective selling Shareholders of Lords. On completion of the said purchase, the company's shareholding in Lords would increase from 60% to 68.69%.

On 30 August 2018, Mahindra Logistics (MLL) announced the acquisition of a strategic stake in Transtech Logistics, also known as ShipX. ShipX is a SAAS (Software as a Service) based Transport Management Solution (TMS) platform that serves the supply chain automation needs for 3PLs, shippers and transporters. ShipX has been working with MLL for over 3 years and has been enabling transportation solutions. This acquisition will help MLL to increase end-to-end digitization and bring in operational efficiencies.

The Board of Directors of the company at its meeting held on 29 August 2018 approved further investment in Lords Freight (India) Pvt. Ltd. by way of an additional purchase of 2.39 lakh equity shares of Lords (representing 10.12% of equity share capital of Lords) from the existing shareholders of Lords.

The Board of Directors of Mahindra Logistics Limited at its meeting held on 1 November 2018 approved further investment in Lords Freight (India) Pvt. Ltd., Subsidiary Company (Lords) by way of purchase of Rs 1.19 lakh equity shares of Lords (representing 5.063% of equity share capital of Lords) from an existing shareholder of Lords. On completion of the said purchase (along with the purchase approved by the Board of the Company at its meeting held on 29 August 2018), the company's shareholding in Lords would increase to 83.874%.

During the financial year 2021-22, Company acquired 100% paid-up share capital of Meru Mobility Tech Private Limited (MMTPL), V-Link Automotive Services Private Limited (VASPL) and V-Link Fleet Solutions Private Limited (VFSPL), fellow subsidiaries of the Company from Meru Travel Solutions Private Limited (MTSPL), and 100% paid-up share capital of MTSPL from Mahindra & Mahindra Limited (M&M), Holding and Promoter Company of the Company and post completion of the acquisition, MMTPL, VASPL, VFSPL and MTSPL became wholly-owned subsidiaries of the Company and remained subsidiaries of M&M. It acquired 60% of the paid-up share capital of ZipZap Logistics Private Limited. On 8th April, 2022, the Company acquired 36% of the paid-up share capital of Whizzard, making Whizzard an Associate of the Company with effect from the said Date.