Mahindra Holidays & Resorts India Limited (MHRIL), a wholly owned subsidiary of Mahindra & Mahindra Ltd, was listed on the (NSE) on Thursday at Rs 370, 23% higher than the issue price of Rs 300.
However, profit booking led to shares touching a low of Rs 311.35 on the NSE, before closing at Rs 317.45 on Thursday. On the BSE, the shares listed at Rs 315, 5% higher than the issue price, before closing at Rs 317.10.
MHRIL has raised Rs 275 crore through the 92.65 lakh equity shares issue. Indicating that 90% of the funds will be going to the parent Mahindra & Mahindra (M&M), which holds 83% in the company, Ramesh Ramanathan, managing director, MHRIL, said, ?MHRIL has Rs 180 crore, which will be used for expansion of existing properties and greenfield projects.?
Asked if the company will need more funds during the financial year (FY’10), he indicated that there is a definite need for more funds which the company will raise during FY’10. He did not divulge more details on the same.
MHRIL plans to take its flagship brand ?Club Mahindra? to markets abroad, including South Africa, China and the Middle East. ?We will be looking at acquiring properties in these markets and run offers for specific markets?, said Ramanathan. He, however, noted that the plan is on the cards but will not materialise this financial year. “We had looked at these markets around a year back, but put them on hold seeing the market condition,” he said.
