Mahindra Holidays & Resorts India IPO opens on June 23

MUMBAI: Mahindra Holidays & Resorts India (MHRIL), one of the leading leisure hospitality providers in India and a part of Mahindra Group, is entering the capital market with an initial public offering of 92,65,275 equity shares of Rs. 10 each for cash at a price to be decided through a 100% book-building process.

The bid/ issue opens on June 23, 2009, and closes on June 26, 2009. The Company has filed a Red Herring Prospectus (���RHP���) with the Registrar of Companies (���ROC���). The issue has been assigned 4 out of 5 IPO grading by Fitch Ratings India reflecting 'above average fundamentals��� of the issue relative to other listed equity securities.

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 & Mahindra Limited (the ���selling shareholder���). The issue would constitute 11.0% of the fully diluted post-issue paid-up capital of the company.

The proceeds from MHRIL���s proposed issue are expected to be deployed in the setting up of new projects and expansion of some of the existing resorts, to provide a larger range of resorts, and hence a wider choice of holiday destinations to members.

Arun Kumar Nanda, chairman, MHRIL, said, "the business of MHRIL has been supported by changing demographics, strong economic growth and increasing disposable incomes in India over the last three years. We believe MHRIL���s brands, inventory, distribution of resorts and its integrated model, combined with the company being an early mover in the industry, will give it significant competitive advantage.���

The global coordinator and book running lead manager is Kotak Mahindra Capital Company Ltd. HSBC Securities and Capital Markets (India) Private Limited. and SBI Capital Markets are the book running lead manager. The equity shares offered through the red herring prospectus of the company are proposed to be listed on the NSE and BSE.