Mahindra Holidays pegs IPO price band at Rs 275-325
MHRIL, a part of the Mahindra Group, has fixed a price band of Rs 275 to Rs 325 per equity share for its initial public offering (IPO) of 92,65,275 equity shares of Rs 10 each.business Updated: Jun 19, 2009 21:12 IST
Mahindra Holidays & Resorts India Limited (MHRIL), a part of the Mahindra Group, has fixed a price band of Rs 275 to Rs 325 per equity share for its initial public offering (IPO) of 92,65,275 equity shares of Rs 10 each.
The issue opens on June 23 and closes on June 26, 2009. MHRIL is seeking to raise around Rs 300 crore from the issue, which would result in public holding of 11 per cent stake in the company.
The holding of Mahindra & Mahindra Ltd in MHRIL would fall from 93.64 per cent now to 83.09 per cent. The remaining shares would be held by State Bank of India, employees, directors and a private equity fund.
MHRIL is the first company to seek listing after a 15-month drought in India’s stock markets, as companies refrained from making public offerings in 2008, faced with the global economic slowdown and a falling market.
MHRIL’s earning per share in 2008-09 was Rs 10.19, up from Rs 5.5 in 2006-07.
“There is no so-called correct timing for an IPO,” said Anand Mahindra, vice-chairman, Mahindra & Mahindra, at a press conference, responding to a question on whether the timing was opportune.
Future plans would include rollout of branded spas and expanding the range of the company’s Club Mahindra operations. Club Mahindra is the company’s membership-based holiday business, which contributes a majority of the company’s revenues.