Mahindra Holidays and Resorts India (MHRIL), a part of the Mahindra Group, closed for subscription with an initial public offering (IPO) 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 issue received fabulous response on the last day and got subscribed 9.8 times. It has received bids for 9,08,33,800 shares as against issue size of 92,65,275 shares.

Subscription Details

The IPO price band was between at Rs 275-325 per share. The size of the issue stood at Rs 301 crore at the upper end of the price band and Rs 255 crore at the lower end of the band. M&M (Mahindra and Mahindra) would raise Rs 90.7-123 crore from the sale of 33 lakh shares and it will hold 83% of the Mahindra Holidays post issue.

The issue comprised a fresh issue of 58,96,084 equity shares and an offer for sale of 33,69,191 equity shares by Mahindra and Mahindra (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.