Mahindra Logistics Ltd is set to buy an additional 8.69% stake in its subsidiary Lords Freight (India) Pvt. Ltd for Rs 1.86 crore ($270,000), it said in a stock exchange disclosure.
Mahindra Logistics is buying the stake from the existing shareholders of Mumbai-based international freight-forwarding company Lords Freight.
After the buy, Mahindra Logistics’ stake in Lords Freight will go up to 68.69%.
Mahindra Logistics said it is picking up stake to consolidate its shareholding in Lords Freight.
The buy is expected to be completed by the end of October.
Incorporated in April 2011, Lords Freight provides international freight-forwarding logistics services for exports and imports, customs brokerage operations, project cargo services and more. It has offices in 11 cities across India.
In 2014, Mahindra Logistics had picked up 60% stake in Lords Freight.
For 2017-18, Lords Freight’s total revenue stood at Rs 177.8 crore, up from Rs 66.8 crore for the previous financial year.
Mahindra Logistics is a portfolio company of Mahindra Partners, the private equity arm of the Mahindra Group.
Mahindra Logistics is an integrated third-party logistics service provider. It claims to serve over 350 corporate customers across industries including automobile, engineering, consumer goods and e-commerce.
Mahindra Logistics’ consolidated revenue from operations stood at Rs 3,416 crore for the year through March 2018, up from Rs 2,666.6 for the previous financial year. The profit after tax was Rs 65.27 crore, up from Rs 46.10 crore during the period.
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