Mahindra Holidays and Resorts India Ltd IPO opens on June 23, 2009 to June 26, 2009.

Mahindra Holidays and Resorts’ initial public offer (IPO) will open on Tuesday. The company had initially filed offer documents in December, 2007 but did not proceed due to unfavorable market conditions. There have been revived efforts for IPO by refilling draft offer documents with SEBI on September 30, 2008.

Mahindra Holidays and Resorts plans to sell 93 lakh shares, representing 11% of the post-issue paid-up capital. The offer price is 275rs on lower band & 325rs on upper band. M&M (Mahindra and Mahindra) will raise Rs 90.7-123 crore from the sale of 33 lakh shares and it will hold 83% of the Mahindra Holidays post issue

Mahindra Holidays and Resorts India Ltd IPO details

1)       Public Issue Open: June 23 ,2009 to June 26, 2009

2)       Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)

3)       Public Issue Size: 92,65,275 Equity Shares of Rs. 10/- face value

4)       Minimum Market Lot: 20 Shares

5)       Public Issue Price: Rs 275/- to Rs 325/-

6)       Maximum Subscription Amount for Retail Investor: Rs 100,000/-

7)       Listing: BSE, NSE

       Lead Manager: Kotak Mahindra Capital Company Ltd, HSBC Securities & Capital Markets Pvt Ltd &     Registrar: Karvy Computer share Pvt Ltd

9)       Grey Market Premium: 150-180 Rs.

10)   Expected Allotment Date: 10-Jul-2009

11)   Expected Refund Date: 11-July-2009 

Company Background:

Incorporated in 1996, Mahindra Holidays and Resorts India Limited (MHRIL) is a part of the US$ 6.3 billion Mahindra group. MHRIL is India’s number one holiday brand offering quality family holidays with a range of services. The company’s flagship brand ‘Club Mahindra Holidays’, has a fast growing customer base of over 96,000 members and 27 beautiful Resorts at some of the most exotic spots in India and abroad. Mahindra’s resorts at Goa, Coorg, Munnar, Manali, Binsar Kumbhalgarh and Dharamshala are recipients of the RCI Gold Crown Award for the year 2008-2009.

 Financial Performance & summary:

-Four year CAGR (Compound Annual Growth Rate) of 43%

-Member enrolment in excess of 25%

IPO Rating: FITCH has assigned an IPO Grade 4 to Mahindra Holidays and Resorts IPO. This means as per FITCH, company has above average fundamentals. FITCH assigns IPO grades on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. 

Share Holding Pattern:

EquityPandit.com recommendation:

By valuating company profile & its financial performance we would advice to subscribe this IPO. Retail investors must go for this IPO for short term as well as for long term. This is one of the good companies that one should add in their portfolio.