Mahindra Holidays IPO opens tomorrow

22 June 2009

In its attempt to take advantage of the current buoyance in the stock market, Mahindra Holidays & Resorts India Ltd., a part of the infrastructure sector of the Mahindra Group, is coming out with a public issue of 92 million equity shares at a price band of between Rs 275 and Rs 325 per share.

The IPO opens tomorrow and closes on June 26.

The company plans to deploy the proceeds to set up new resorts and to expand existing ones.

At least 60 per cent of the issue will be allocated on proportionate basis to qualified institutional buyers, out of which 5 per cent will be available for allocation to mutual funds. About 10 per cent of the issue will be available for allocation to non-institutional bidders and 30 per cent for allocation to retail individual bidders.

A leading player in the vacation ownership space,  the company's flagship brand 'Club Mahindra Holidays', has a fast growing customer base of over 79,000 members and 23 Resorts at some of the most exotic spots in India and abroad.

The company plans to expand the inventory of apartments and enhance facilities at Coorg in Karnataka, Ashtamudi in Kerala, renovate the resort at Ooty (Tamil Nadu) and construct new resorts at Tungi in  Maharashtra and and Theog, in  Shimla.