The stock market listing of Mahindra Logistics by its parent company Mahindra & Mahindra got underway this week with the launch of the initial public offering which should raise about $128m for its owners.

According to a prospectus document, a total of 19.33m shares – just over a 27% stake in the 3PL – will be offered to investors, with majority 73.2% owner Mahindra selling about half of the total number.

Significant shareholder Normandy Holdings, with a 22.3% stake prior to the IPO, or 15.7m shares, will be selling 9.27m shares, while private equity group Keedara Capital is selling about 395,000 from its stock.

Mahindra Logistics’ supply chain management business counts Volkswagen India, Bosch, BMW and Mercedes-Benz as key automotive clients.

The company still depends significantly on the Mahindra & Mahindra group for business, with the company contributing 53.96% of revenue from operations in the 2017 financial year. This has, however, decreased from 70.14% just two years earlier.

Its subsidiary, 2X2 Logistics, provides logistics and transport services to OEMs to carry finished vehicles from manufacturing locations to stockyards or directly to distributors.

The company said it could benefit from the recent roll-out of the new Goods and Services Tax (GST) in the country.

“We expect the GST regime to benefit the inter-state movement of goods which may lead to opportunities for growth of our business as we expect companies across several industries in India to make their storage and transportation decisions on the basis of logistical efficiencies instead of their tax efficiency and restructure and optimize their storage, logistics and supply chain systems,” said the company in the prospectus.