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| Mahindra Holidays' public offer price fixed at Rs 300 |
| Press Trust Of India / Mumbai Jun 30, 2009, 00:51 IST |
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.jpg "Arun Nanda") Leisure hospitality provider Mahindra Holidays and Resorts India (MHRIL) has fixed the issue price for its Initial Public Offering (IPO) at Rs 300 per share.
The IPO, which broke the four-month lull in the primary market, was subscribed 9.8 times the number of shares on offer at the end of the issue period on June 26.
The issue received bids for 9,08,33,800 shares against the issue size of 92,65,275 shares, a statement said today.
The price band of the issue had been fixed between Rs 275 and Rs 325 per share. However, the issue was subscribed around 7.13 times at the top end of the price band at Rs 325, while the rest of the bids were less than the higher end of the band.
The size of the issue stood at Rs 301.12 crore at the upper end of the price-band and Rs 254.80 crore at the lower end.
Initial data available on the National Stock Exchange website shows that the qualified institutional buyer portion was subscribed around 12.83 times, high net worth investors around 11.01 times and the retail investors' portion around 3.36 times. MHRIL Chairman Arun Nanda said, "I am delighted with the overwhelming investor response, which demonstrates acceptance of the product concept and the business model of the company and faith in the Mahindra Group management.”
The issue comprised a fresh issue of 58,96,084 equity shares and an offer for sale of 33,69,191 equity shares by Mahindra & Mahindra, the selling shareholder.
The issue constituted 11 per cent of the fully-diluted post-issue paid-up capital of the company.
The proceeds of the issue are expected to be deployed in the setting up of new projects and expansion of some of the existing resorts, to provide a larger range of resorts and hence, a wider choice of holiday destinations to members, the release said.
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