Let's see the fine details of the Mahindra Holidays IPO and see if this Mahindra Holidays IPO is worth applying for, should the investors bet their money on Mahindra Holidays IPO or whether the Mahindra Holidays IPO good enough or not.
What is the primary purpose for the Mahindra Holidays IPO?
The Mahindra Holidays IPO has been launched to raise money for funding its existing business. A part of the capital raised will also be used for expansion of projects across the country.
Is this the right time for Mahindra Holidays IPO, given the fact that the economy has been seeing lot of problems?
That's the million dollar question. When things go bad, as they have been in the last years, the first thing that is hit is the leisure and luxury. When people suffer for basic necesities, the luxury things are kept aside. Hence, Holidaying and leisure business takes a bit toll. However, Mahindra Holidays claim that they are not hit by the recession. They claim that the no. of members for them have increased significantly.
Though they have not given any details about the membership status, but the fact is that they remain one of the major holiday business companies of India. India has been a country which was shielded from recession, so there is a lot of weightage behind this claim.
Moreover, now with a stable government and economy showing signs of revival, it appears that Mahindra Holidays IPO is well set to come out with the IPO.
How many shares will be offered through the Mahindra Holidays IPO?
A total of 92,65,275 shares are being offered through the Mahindra Holidays IPO .
What is the price band for the Mahindra Holidays IPO?
The price band is between Rs. 275 to 325 per equity share
What are the date for the Mahindra Holidays IPO?
The Mahindra Holidays IPO will open on date June 23 and closes on June 26, 2009.
What are the plus points of Mahindra Holidays IPO?
The company is debt free.
It has a presence across all over India with all major tourist destinations covered.
The plans for expansion are also there. They are coming up with the "spa" facilities and adventure tourism.
They are also conceptualising the "budget holidays" at lower rates.
The primary target customers for this company have been higher income group people, who dont mind spending that extra for leisure.
The Mahindra Holiday Group has a total of 27 resorts out of which 11 are fully owned by the Group, 12 are on a long lease
1 comment:
I will not subscribe to the view that they are not hit by the recession .. reasons ..
Top line growth of just 11%
Bottom line declined by 6%
They had to launch higher tenure EMI scheme so that they can decrease EMI.
Compare this with previous year growth numbers which were > 30% for last many years.
Why bottom line decreased .. as in this tough time their marketing (customer acquisition) cost increased.
Any way this a small/mid cap company .. there are so many mid/small cap companies with similar or batter growth trajectory available under 12 PE why to go for 27 PE company.
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