Mahindra Holidays & Resorts, part of $4 billion Mahindra Group, will offer 1 per cent stake in the company to Jacob Ballas India Fund through a private placement basis for a consideration of around $10.06 million (Rs 39.50 crore).
The pre-IPO placement deal values the hospitality arm of automaker Mahindra & Mahindra at around Rs 4,000 crore.
The equity shares to be transferred to NYLIM Jacob Ballas India Fund III, LLC, should be subject to lock-in after the Initial Public Offering as per SEBI regulations, Mahindra & Mahindra informed the Bombay Stock Exchange.
New York Life Investment Management LLC (NYLIM) has a shareholding in Jacob Ballas Capital India, a non-banking finance company focused on private equity advisory services.
Mahindra Holidays, which runs the Club Mahindra brand of resorts, would come out with an IPO in the first quarter of this year. The company would issue 10.7 crore shares of Rs 10 each at a price to be decided through 100 per cent book building process.
The company had filed a draft red herring prospectus with market regulator SEBI in December 2007. The equity shares are proposed to be listed on the National Stock Exchange and BSE.
Earlier on January 8, State Bank of India had picked up two per cent stake in Mahindra Holidays & Resorts India for Rs 80 crore.
Kotak Mahindra Capital Company is the lead manager for the pre IPO placement.
Shares of Mahindra & Mahindra closed at Rs 739.05, up 0.52 per cent on the BSE.
Source: Sify