Mahindra Holidays IPO opens on 23 June 2009

To offer 92.65 lakh shares

Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, will launch its initial public offer (IPO) on 23 June 2009. Bidding will remain open till 26 June 2009.

The company plans to sell 92.65 lakh shares, representing 11% of the post-issue paid up capital. The price-band of the book-built issue will be declared two days before the issue opens.

The IPO proceeds will be utilised in expanding current properties and adding five new properties at Kumbalgarh in Rajasthan, Kadambakkam in Tamil Nadu, Binsar in Uttaranchal, Theog in Himachal Pradesh, and Tungi in Maharashtra.

Mahindra Holidays & Resorts had raised nearly Rs 120 crore by selling 2% stake to State Bank of India and 1% stake to Jacob Ballas India Fund in February 2008. The transaction had taken place at Rs 479 a share.

Mahindra Holidays & Resorts India runs the shared vacation home business, Club Mahindra Holidays. India's largest tractor maker by sales Mahindra & Mahindra holds 93.64% in the company.