The stock of Mahindra Holidays and Resorts India Limited’s (MHRIL) opened 5 per cent above its issue price of Rs 300 on first day of its listing on Thursday. The scrip listed at BSE at Rs 315 and touched high of Rs 339.70 before ending at Rs 317. On NSE the stock listed at Rs 370.00 and ranged between Rs 374 and 311 before closing at Rs 317.
The company had raised Rs 275 crore through its Initial Public Offering (IPO) last month, which closed on June 26. The IPO was subscribed nearly ten times.
Of the raised amount, Rs 175 crore would be used up by MHRIL would use the amount on expansions and in building two greenfield projects near Mumbai at Lonavala and Tungi. The remaining Rs 100 crore would go to Mahindra group.
MHRIL's Managing Director, Ramesh Ramanathan said, “The company is undertaking capacity expansions of its resorts at Coorg in Karnataka, Binsar in Uttarakhand and Ashtamudi in Kerala. The company has seen strong growth over the last two quarters.
MHRIL has 27 resorts in India and Thailand, and plans to expand. “MHRIL is keen on expanding globally and wants to buy properties overseas,” Ramanathan said, suggesting South Africa, West Asia and China as likely destinations.