Mahindra Holidays and Resorts India( MHRIL), promoted by auto maker Mahindra & Mahindra, has filed its DRHP with Sebi on 3.10.2008 to enter the capital market with an IPO of 92,65 275 equity shares of Rs 10 each at a price to be decided at a later stage through the 100% book building process. The issue comprises of fresh issue of 58,96,084 equity shares of Rs 10 each and an offer for sale by Mahindra & Mahindra of 33, 69,191 equity shares of Rs 10 each.
The issue will constitute 11% of the fully diluted post issue paid-up capital of the company.
The company proposes to list its shares on BSE and NSE and the BRLMs to the issue are Kotak Investment Banking and HSBC Securities.
The objects of the issue are for raising funds for financing of expansion of resorts and setting up new projects.
The company proposes to deploy Rs 195 crores out of the issue proceeds, for the above-mentioned project cost.
MHRIL, 93.64% owned by its parent, Mah & Mah, earned 75.7% of its revenues from vacational ownership out of the total Rs377 crores in March 2008.
Mahindra Holidays intends to sell the family holiday vacation ownership concept in India and US and Austria and plans to acquire or develop resort properties.
The company has two subsidiaries-one in the US, incorporated in 2003, and the other, in Austria, last year. The US company-Mahindra Holidays and Resorts USA Inc. reported a revenue of Rs4.45 crore and a net profit of Rs3.38 crore in March 2008.
MHR Hotel Management Gmbh, which manages a hotel in Austria, posted a loss of Rs4 lakh with Rs 54 lakh in revenues last year.
The company had sold 2.11% of its stake to State Bank of India for Rs78.99 crore and 1.05% to Nylim Jacob Ballas India Fund III, Llc. for Rs39.5 crore at Rs479 a share last year.
The company plans to build more resorts and holiday homes in India and simultaneously look at opportunities in developing markets.
The company expects to double its room inventory to over 1,500 apartments. During this financial year, it has increased its inventory through a combination of property acquisition, leases and existing property expansions. Besides this, it also purchased land in several destinations for the development of Greenfield resorts. The firm currently has 85,000 families as members, which is likely to go up to 100,000 by next fiscal. The company has positioned itself as a No. 1 holiday brand in the country, for the last 11 years. The company's pan-India network of 30 resorts, offers a diverse range of holiday experiences varying from Beach Holidays to Hill Stations and Jungle Resorts. Earlier this year, MHRIL had announced plans for an initial public offering but the plans were deferred, due to adverse market conditions.
For the year ended 31.3 2008, the company posted total income of Rs 377 crores as against Rs 241 crores for the year ended 31.3 2007. The company's net profit for the year was Rs 84 crores