The Hindu : Business : Mahindra Holidays files draft prospectus

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Saturday, Dec 15, 2007
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Mahindra Holidays files draft prospectus

Staff Correspondent

The issue comprises a fresh issue and an offer for sale of equity shares

CHENNAI: Mahindra Holidays & Resorts India Limited, a leisure hospitality provider offering family holidays and part of the Mahindra Group of companies, is entering the capital market.

It has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of 10.72 million equity shares of Rs. 10 each for cash at a price (equity shares) to be decided through a 100 per cent book-building process. The issue would constitute 13 per cent of the fully diluted post-issue paid-up capital of the company.

The issue comprises a fresh issue of 4.12 million equity shares and an offer for sale of 6.60 million equity shares by Mahindra Holdings & Finance Limited (the selling shareholder).

The selling shareholder is considering a pre-IPO sale of up to 2.47 million equity shares to certain investors.

New resorts

The objects of this issue include financing the expansion of some of its existing resorts and setting up of new projects.

The company has plans to construct new resorts and projects at Puducherry, Kumbalgarh (Rajasthan), Kadambakkam (Tamil Nadu), Binsar (Uttaranchal), Theog (Himachal Pradesh) and Tungi (Maharashtra).

The equity shares offered through this DRHP are proposed to be listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

The company has successfully become a provider of quality family holidays having pan-India coverage with a total of 21 resorts and has 63,375 vacation ownership members. In addition to this the company provides access to over 4,000 resorts worldwide through affiliations.

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