Mahindra Holidays gains after acquisition

Mahindra Holidays & Resorts India rose 4% to Rs 465.50 at 11:30 IST on BSE after the company said it has inked a pact to acquire 12% stake in Nreach Online Services for Rs 3 crore.

The announcement was made on Saturday, 1 October 2016.

Meanwhile, the BSE Sensex was up 287.92 points, or 1.03%, to 28,153.88.

On BSE, so far 1,167 shares were traded in the counter, compared with average daily volume of 7,404 shares in the past one quarter. The stock hit a high of Rs 467 and a low of Rs 452 so far during the day. The stock hit a 52-week high of Rs 513.30 on 26 August 2016. The stock hit a 52-week low of Rs 303.75 on 5 October 2015. The stock had underperformed the market over the past 30 days till 30 September 2016, falling 6.01% compared with 1.96% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 8.64% as against Sensex's 2.66% rise.

The mid-cap company has equity capital of Rs 88.78 crore. Face value per share is Rs 10.

Nreach Online Services owns a brand 'GIFTXOXO', which offers over 4,000 categories of experiences and activities including travel and adventure, gourmet, health and wellness, art and learning.

Mahindra Holidays & Resorts India said this is strategic investment by the company. Nreach will help in curating experiences for the company's 2 lakh vacation ownership (Club Mahindra Holidays) members in and around various cities in India.

Net profit of Mahindra Holidays & Resorts India rose 20% to Rs 30.24 crore on 4.5% rise in net sales to Rs 228.88 crore in Q1 June 2016 over Q1 June 2015.

Mahindra Holidays & Resorts India is a part of the leisure and hospitality sector of the Mahindra Group.

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