Mahindra Holidays to list on July 16

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Mahindra Holidays and Resorts India (MHRIL), a part of the Mahindra Group, will list its equity shares on the BSE and NSE on July 16 (Thursday). It has been fixed its issue price at Rs 300 a share. The price band was between Rs 275-325 a share.

Investment advisor, S P Tulsian told moneycontrol.com that the stock would list at around Rs 330 a share as against its issue price of Rs 300 a share. He advised profit booking and said the stock would stay above the issue price on listing day.

The issue had opened for subscription between June 23 and June 26, 2009, with an initial public offering (IPO) of 92,65,275 equity shares

The issue was subscribed 9.8 times. Qualified institutional buyers gave strong response to the issue, with their portion being subscribed 12.8 times followed by non institutional investors with 11 times subscription.

The size of the issue stood at Rs 277.95 crore at the issue price. M&M (Mahindra and Mahindra) raised over Rs 101 crore from the sale of 33,69,191 shares and it holds 83% of the Mahindra Holidays post the issue.

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.

The global coordinator and book running lead manager (BRLM) was Kotak Mahindra Capital Company Limited. HSBC Securities & Capital Markets (India) Private Limited and SBI Capital Markets were the BRLMs. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.