MUMBAI, June 29, 2009 (AFP) – India’s Mahindra Holidays and Resorts Monday said it hoped to raise almost 60 million dollars when it becomes the first firm to float on the country’s capital markets in more than a year. The firm, a subsidiary of the Mahindra group, said it will sell 9.26 million shares through an initial public offering (IPO) at a cost of 300 rupees apiece, amounting to 2.78 billion rupees (57.66 million dollars).
Mahindra Holidays is India’s first company to announce a capital raising through an IPO in nearly fifteen months after global markets collapsed due to the financial crisis last year.
India’s benchmark 30-share Sensex fell 60 percent in the fifteen months to March this year before its started to climb again.
Mahindra had put the bidding range at 275 to 325 rupees.
The firm plans to list at major stock exchanges in about 21 days.
The share sale represents 11 percent of the post-issue paid-up capital of the company, whose IPO closed for subscription last Friday.
The money raised from the issue will be used for new projects and the expansion of existing resorts, a company statement said.
Mahindra Holidays has 96,067 members and 27 resorts across India