Mahindra Holidays files IPO prospectus

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Mahindra Holidays has filed draft red herring prospectus (DRHP) with SEBI to sell 92 lakh shares at Rs 10 per share via IPO. The equity dilution will be 11% post issue, reports CNBC-TV18.

The company had initially filed offer documents in December 2007 but did not press ahead with the offer then due to unfavorable market conditions. 

Mahindra Holidays and Resorts IPO Details:

• Plans to sell 92.65 lakh shares, representing 11 percent of the post-issue paid up capital.
• Raising approx Rs 450 crore.
• The company earlier sold around 3 % stake in all as pre-IPO placement at Rs 478 a share to the State Bank of India (2 %) and NYLIM Jacob Ballas India Fund III (1 %).
• Objects of the issue are primarily towards expansion of current properties and addition of five new properties such as Kumbalgarh (Rajasthan), Kadambakkam (Tamil Nadu), Binsar (Uttaranchal), Theog (Himachal Pradesh), Tungi (Maharashtra). 

Mahindra Holidays and Resorts Going Forward ....

• The company is undergoing a Rs 350-400 cr expansion.
• Plans to double its room inventory to 1,500 apartments in about a year.
• The company has 85,000 members and expected this to reach one lakh by March 2009 

Mahindra Holidays and Resorts:

• MHR is a leader in providing timeshare holiday packages, with 19 resorts across the country and a tie-up with RCI for properties overseas.
• Has over 63,000 members which have been growing at ~35% over the last few years.
• Each member is entitled to use one week for 25 years at any of its properties.
• Operates on a timeshare model which includes an upfront payment plus an annual subscription fee.
• Recently signed an agreement with Tata-owned Indian Hotels Company, owners of the Taj brand, to acquire its Taj Garden Retreat at Thekkady in Kerala.