Mumbai: Owner of the Club Mahindra Holidays brand, Mahindra Holidays and Resorts India Ltd, has set the price of its initial offering at Rs300 a share, chairman Arun Nanda said over the telephone on Monday. The company drew bids for about 10 times the 9.27 million shares on offer at the end of the sale on 26 June, according to the National Stock Exchange’s website.
“We have kept the price at Rs300 apiece instead of pricing it at the upper end of the band as a goodwill gesture towards retail investors,” Nanda said in an interview. The Chennai-based company had offered the stock, including 5.9 million new shares, at Rs275-325 apiece in the sale that started 23 June. Of the amount raised, Mahindra Holidays will get as much as Rs1.92 billion, with the rest going to founder Mahindra and Mahindra Ltd.
“The response demonstrates acceptance of the product concept and the business model of the company and faith in the Mahindra group management,” Nanda said. The shares on offer will account for 11% of the firms fully diluted, post-issue capital, while the founder will hold an 83.09% stake.
Kotak Mahindra Capital Co. Ltd, HSBC Securities and Capital Markets (India) Pvt. Ltd and SBI Capital Markets Ltd are managing the sale.