Club Mahindra is in plan to hit the market with its IPO till month end.
Mahindra Holidays & resort is planning to hit market with its IPO, That’s the news after a long gap, let’s wait for its final date of arrival in the market. I think its really good news.
- Mahindra Holidays & Resorts India, popularly known as Club Mahindra — has decided to hit the primary market by the end of this month. The issue, which will offer nearly 94-lakh equity shares representing 11% of the company’s expanded capital base, will be closed before the forthcoming Union Budget, said a person involved with the public issue.
- The company, which enjoys 75% domestic resorts market share, will issue around 59-lakh fresh shares while the promoters, Mahindra Group, will offer around 35-lakh shares through the IPO. The price of the book-built issue, for which the company has sought RoC permission on Friday, will be decided two days before the issue opens. The company already has the approval of market regulator Sebi for the public issue.
- Mahindra Holidays & Resorts had raised nearly Rs 120 crore by selling 2% stake to SBI and 1% stake to Jacob Ballas in February last year. The transaction had taken place at Rs 479 a share. But it seems unlikely that the company would be able to secure similar valuation
- Mahindra Holidays, which the Mahindras set up 25 years ago with a paltry investment of Rs 20 crore, has been growing at a CAGR of 43% over the past four years. During the period, its net profit grew 76%. In FY09, it had a topline of around Rs 400 crore and a net profit of over Rs 80 crore.
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