Club Mahindra issue price fixed at Rs 300 a share

Written by fe Bureau | Mumbai | Updated: Jun 30 2009, 06:29am hrs
Mahindra Holidays & Resorts India Ltd (MHRIL), a part of Mahindra Group has set Rs 300 each as the initial public offer (IPO) price for its 92.65 lakh equity shares. The issue that opened June 23 and closed June 26 was subscribed 9.8 times as per the company.

The qualified institutional placement (QIP) portion was subscribed 12.83 times, high net worth individuals 11.01 times, retail portion was subscribed around 3.3 times, the release said. The proceeds of the issue will be used in setting up new projects and for expansion of existing resorts.

The offer, representing about 11% of the post-issue paid-up capital, comprised a fresh issue by Mahindra & Mahindra (M&M) of 58.96 lakh equity shares and an offer for sale of 33.69 lakh equity shares thus amounting to 92.65 lakh equity shares. M&M closed up 0.94% at Rs 704.05 on the BSE on Monday.

MHRIL had fixed price band between Rs 275 and Rs 325 per equity share for the issue. The size of the issue stood at Rs 301.12 crore at the upper end and Rs 254.80 crore at the lower end of the band. At the top end of the price band, the overall issue was subscribed 7.13 times with QIP at 8.56 times and retail investors 3.36 times.

Arun Nanda, chairman, Mahindra Holidays & Resorts India Ltd, said, The overwhelming investor response demonstrates acceptance of the product concept and the business model of the company and faith in the Mahindra Group Management.