Mumbai: Mahindra Holidays & Resorts, part of $4 billion Mahindra Group, said on 15 December it has filed a draft red herring prospectus (DRHP) with market regulator Sebi for an initial public offering.
The company plans to issue 1.07 crore equity shares of Rs10 each in the IPO that would dilute 13% of promoters’ equity.
“We would be diluting 13% of our shareholding in Mahindra Holidays and Resorts post the initial public offer,” Mahindra and Mahindra executive director, Arun Nanda, told PTI.
Of the 13% dilution, 3% would be through pre-IPO placement, for which the group is in talks with a few people, Nanda said without naming any.
The IPO proceeds would be used to finance expansion of existing resorts and setting up new projects in Puducherry, Rajasthan, Tamil Nadu, Uttaranchal, Himachal Pradesh and Maharashtra, the group said in a statement.
The company runs 16 resorts in various locations including Himachal Pradesh, Uttarakhand, Goa, Tamil Nadu and Thailand.
It had earlier disclosed the plans to start six new resorts within the next few months. While three resorts are likely to be operationalized over the next three months, construction is expected to begin on other three soon.
As many as six group companies are already listed on the bourses, including M&M, Mahindra Forgings Ltd, M&M Financial Services Ltd and Mahindra Gesco Developers Ltd.