Mahindra Holidays and Resorts India (MHRIL)has priced its initial public offering (IPO) at a price band of Rs 275-325, nearly 32 per cent discount to the price at which it sold over 3 per cent stake to State Bank of India (SBI) and Nylim Jacob Ballas India Fund last year.
In a pre-IPO stake sale during January 2008, MHRIL sold 2.11 per cent stake to SBI and 1.05 per cent stake to Jacob Ballas at Rs 478 per share. It raised Rs 120 crore through the transaction, which valued the company around Rs 4,000 crore.
Post IPO stakes of these two investors will go down marginally to 1.96 per cent and 0.98 per cent, respectively.
The subsidiary of auto major Mahindra & Mahindra Ltd (M&M), will be opening its IPO on June 23 and close on June 26, before the much awaited issues of Oil India Ltd and NHPC Ltd hit the market. The company plans to raise over Rs 300 crore through the process.
The issue comprises a fresh issue of 58.96 lakh equity shares and an offer for sale of 33.69 shares by M&M, remains unchanged.
This is the second attempt by MHRIL to hit the capital markets. The company was planning to launch its IPO earlier in January 2008, before the market collapse forced the company to postpone the issue.
MHRIL refilled its prospectus with Securities and Exchange Board of India for the IPO in September 2008. The issue would constitute 11 per cent of the fully diluted post-issue paid-up capital of the company. Post-IPO promoter stake will decline from 93.64 to 83.09.
Kotak Investment Banking is the global co-ordinator and the book running lead manager while HSBC Securities and Capital Markets (India) Pvt Ltd and SBI Capital Markets are the book running lead managers.
The cumulative member base of MHRIL increased to 96,067 members by end of fiscal 2008-09 from 38,691 in fiscal 2005-06 and has 27 resorts across India and Thailand. About 35.18 per cent of new member additions last year came from references by existing members.
Source: My Digital FC