Mahindra Holidays fixes IPO price band at Rs 275-325/sh

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Mr Arun Kumar Nanda, Chairman, MHRIL, said,  "It is a proud moment that the Mahindra & Mahindra Group's leisure hospitality and vacation ownership company with an integrated business model is poised to tap the capital markets. 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 (BRLM) is Kotak Mahindra Capital Company Limited. HSBC Securities & Capital Markets (India) Private Limited and SBI Capital Markets are the BRLMs. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

MHRIL, one of the leading players in the leisure hospitality industry, offers quality family holidays primarily through vacation ownership memberships. MHRIL's flagship brand is Club Mahindra Holidays, which has been selected as Superbrand 2009. MHRIL has also introduced new vacation ownership offerings such as Zest and Club Mahindra Fundays, Mahindra Homestays, travel and holiday related services through clubmahindra.travel. The cumulative member base increased to 92,825 in fiscal 2009 from 38,691 in fiscal 2006. As of May 31, 2009, MHRIL has 96,067 members and 27 resorts across India and Thailand. About 35.18% of new member additions in FY09 came from referrals by existing members.

Mahindra Holidays had initially filed offer documents in December 2007 but did not proceed due to unfavourable market conditions. The company refiled its draft offer documents with SEBI on 30 September 2008.

It had sold a 2% stake to SBI and 1% stake to Jacob Ballas as pre-IPO placement at Rs 478/share in January 2008. It raised Rs 120 crore through a 3% sale.

Its reported FY09 sales were at Rs 400 crore and profit was at Rs 80 crore.