Mahindra Holidays IPO to open on June 23

Mahindra HolidaysMahindra Holidays & Resorts India Limited, a part of the Mahindra Group of Companies, is entering the capital market with a public issue of 92.65 lakh equity shares of Rs 10 each for cash at a premium to be decided through the 100 per cent book building process.

The issue, which will represent 11% of the post-issue paid up capital, will open on June 23 and close on June 26.

It should be noted that, credit rating agency Fitch Rating India, has already assigned '4' out of '5' grading to company IPO, which reflects 'above average fundamentals' of the issue relative to other listed equity securities.

Chennai-headquartered Mahindra Holidays & Resorts India Limited operates as leisure hospitality provider in India. It provides family holidays primarily through vacation ownership memberships.

The object of the issue is to raise capital for financing the expenditure on the company's proposed business plans and to meet additional working capital, which will be spend on expansion of some of the existing resorts to provide a larger range of resorts.

The company proposes to list its Equity Shares on the Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ("NSE").

The global coordinator and book running lead manager is Kotak Mahindra Capital Company Ltd, while HSBC Securities and Capital Markets (India) Private Limited and SBI Capital Markets are the book running lead manager.