|
| Mahindra Holidays to sell 11% stake through IPO |
| BS Reporter / Mumbai Oct 01, 2008, 00:05 IST |
|
 Mahindra Holidays and Resorts (MHRIL), a group company of the $6-billion Mahindra & Mahindra group, is seeking regulatory approval to raise about Rs 450 crore from sale of additional shares in an initial public offering (IPO).
The leisure hospitality company today filed a revised draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). It had earlier filed a similar document last year.
The company plans to sell 92,65,275 equity shares of Rs 10 each for cash at a price to be decided entirely through a book-building process. The issue would constitute 11 per cent of the fully diluted post-issue paid up capital of the company.
Club Mahindra Holidays plans to raise Rs 400-450 crore from the IPO, sources said. The company earlier sold around 3 per cent stake as pre-IPO placement at Rs 478 a share to the State Bank of India (2 per cent) and NYLIM Jacob Ballas India Fund III (1 per cent).
“Our performance in the last six months has given us the confidence to go to the market to raise fund,” said Arun Nanda, chairman, MHRIL. For the last four years, its revenue has grown at 52 per cent CAGR and the bottomline has grown at 106 per cent (CAGR).
The shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange, the company stated in a release.
This is the second time that the company has filed a DRHP after it aborted a similar attempt last year due to unfavourable market conditions.
The company is undergoing a Rs 350-400 crore expansion. Accordingly the company will double its room inventory to 1,500 apartments in about a year.
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
