Mahindra Holidays

Mahindra Holidays & Resorts India Ltd, a subsidiary of Mahindra & Mahindra, has filed its DRHP on18/12/07 with Sebi to enter the capital market with an initial public offer of 10.7 million equity shares of Rs 10 each to fund its expansion plans, constituting 13 per cent of its fully-diluted post paid-up capital. 

Mahindra Holidays and Resorts, popular for its brand of Club Mahindra Holidays, is a leisure hospitality provider offering quality family holidays having pan-India coverage with a total of 21 resorts and has 63,375 vacation ownership members. In addition to this the company provides access to over 4,000 resorts worldwide through affiliations.

The issue comprises of the sale of 6.59 million shares (8 per cent) by the promoters (Mahindra Holdings & Finance Ltd) and a fresh issue of 4.12 million shares (5 per cent). The company has also planned pre-IPO placement of upto 2.47 million shares from the promoters' offer. If the pre-IPO placement happens, the size of issue to the public would be reduced to 10 per cent of the post issue capital of the company.

The funds from the IPO will be used for activities at existing resorts and for seven new projects at Pondicherry, Kumbhalgarh (Rajasthan), Kodambakkam (Tamil Nadu), Binsar (Uttaranchal), Theog (Himachal Pradesh) and Tungi (Maharashtra). About Rs 48.3 crore will be spent on expanding existing resorts and Rs 146.2 crore for the new projects.

The company posted a profit after tax of Rs 42.54 crore for the year ended March 31, 2007, 112% higher than in the previous year.

The company proposes to list the shares on BSE and the NSE.

Kotak Mahindra is the global book running lead manager for the issue, besides HSBC Securities and Capital Markets India.