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| MHRIL plans more resorts with IPO funds |
| BS Reporter / Mumbai Jun 20, 2009, 00:56 IST |
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 Mahindra Holidays & Resorts India (MHRIL), the Mahindra & Mahindra Group’s leisure and hospitality company, today said it will add new properties and expand some of its existing resorts with the proceeds raised through its initial public offering (IPO), which will hit the market on Tuesday.
The company has fixed the IPO’s price band between Rs 275 and Rs 325 per equity share for 9,265,275 shares of Rs 10 each. The issue opens on June 23 and closes on June 26. The minimum bid lot size is 20. The IPO has been assigned an IPO grading of 4 out of 5 by Fitch Ratings. It would constitute 11 per cent of the fully-diluted post-issue paid up capital of the company. MHRIL will raise Rs 236-240 crore from investors, based on the price band.
MHRIL currently has 27 resorts in India and Thailand and a membership base of about 97,000. It also owns four brands within itself, including Mahindra Zest, Club Mahindra Fundays, Mahindra Homestays and Club Mahindra Travel.
Anand Mahindra, vice-chairman and managing director, Mahindra & Mahindra, said: “The success of Mahindra Holidays has emboldened us into the IPO. New projects and expansions of existing properties will be undertaken from the proceeds of the issue.”
The company will take the concept to overseas locations, like South Africa and China — two countries where the automotive division of the company has already established the Mahindra brand.
“We are looking at various places to put up our resorts. A number of rooms will be added in due course of time, but the location of it will be discussed later,” Ramesh Ramanathan, MD of Mahindra Holidays, said.
The ratio of the company’s members to its resorts is presently at 2,333:1.
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