The initial public offer (IPO) of Mahindra Holidays & Resorts got subscribed 20 per cent on the first day of its issue today with most of the bids coming in from institutional investors.

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The issue received bids for 18.75 lakh shares, representing 0.20 times of the shares on offer, as per data available with the National Stock Exchange.

The price band for the issue has been fixed between Rs 275 and Rs 325 per equity share.

Qualified institutional buyers, which include foreign institutional investors (FIIs) and mutual funds, subscribed 32 per cent of the 55.59 lakh shares reserved for them, the NSE data shows.

The company has come out with an IPO of over 92.65 lakh shares and the issue would close on June 26.

The issue proceeds would be utilised for setting up new projects and expanding some of the company's resorts in Coorg, Binsar(Uttarakhand) and Ashtamudi (Kerala) to provide a larger range of resorts.

The company has built 27 resorts and 1,261 apartments over the last 12 years and 35 per cent of vacation ownerships were sold in fiscal year 2009 through member referrals.

Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India) & SBI Capital Markets are acting as the lead managers to the issue.

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