Leisure hospitality provider Mahindra Holidays and Resorts India today launched its Initial Public Offer (IPO) to enter the capital market in a price band fixed between Rs 275 and Rs 325 per equity share.
"The fixed price band between Rs 275 and Rs 325 per equity share is for an Initial Public Offering of 92,65,275 equity shares of Rs 10 each for cash at a price to be decided through 100 per cent book building process", Mahindra Holidays and Resorts India Managing Director Ramesh Ramanathan said.
The bid opened today (June 23) and would close on June 26, 2009, he added.
Proceeds from the issue are expected to be deployed in setting up new projects and expanding some of the company's resorts in Coorg, Binsar(Uttarakhand) and Ashtamudi (Kerala) to provide a larger range of resorts, he said.
"Floating cottages — (cottages on water) are coming up in Ashtamudi area", he informed.
The issue comprises a fresh issue of 58,96.084 equity shares and an offer for sale of 33,69,191 equity shares by Mahindra and Mahindra.
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The company has built 27 resorts and 1,261 apartments over the last 12 years and 35 per cent of vacation ownerships were sold in fiscal year 2009 through member referrals, he said.
The bids can be made for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter.
Ramanathan added the company planned to enter all Tier II and Tier III cities through their brand Club Mahindra and also set up 'Gypsy' a composite product to be set up near existing resorts targeting children, teenages and corporates.
He said they have seen 75 per cent occupancy rate in all their resorts last year. Six per cent were contributed from non-members alone, he added.