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Coimbatore, Jan. 8 State Bank of India has picked up a 2 per cent stake in Mahindra Holidays and Resorts India Ltd (MHRIL) for about Rs 80 crore even as the company is preparing to come out with an IPO.

The equity shares would be subject to lock-in after the IPO as per the SEBI regulations.

MHRIL, a leisure hospitality provider offering family holidays under the brand name ‘Club Mahindra Holidays’ and a subsidiary of Mahindra Holdings and Finance Ltd (a wholly-owned subsidiary of Mahindra & Mahindra ), which filed a draft red herring prospectus with Securities and Exchange Board of India (SEBI) last month, is planning an IPO in the first quarter of the year. Its IPO of 10,719,347 equity shares of Rs 10 each for cash is at a price to be decided through a 100 per cent book-building process.

MHRIL said that it has finalised a 2 per cent private placement deal with the SBI for a consideration of around Rs 80 crore and the shares to be transferred to the SBI would be subject to lock-in after the IPO as per SEBI regulations.

In a communication to the NSE, Mr Arun Nanda, Chairman of Mahindra Holidays & Resorts, said: “We are overwhelmed with the response to the intended pre-IPO placement and are pleased to have State Bank of India as an investor.”

He added : “It is also testimony to the evolution of the leisure and hospitality sector and confidence of consumers and investors in the Club Mahindra brand as a leading player in that space.”

More Stories on : Public Sector Banks | Stocks | Resorts & Amusement Parks | State Bank of India

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