State Bank in Rs800-crore pre-IPO private placement with Mahindra Holidays

State Bank of India has finalised deal with leisure hospitality provider Mahindra Holidays and Resorts India (MHRIL), that owns Club Mahindra Holidays, to take a 2-per cent stake through private placement deal for around Rs800 crore.

The equity shares that State Bank acquires will be subject to lock-in after the IPO as per SEBI regulations.
 
Mahindra Holidays has planned an IPO in the first quarter of the year has filed its draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering of 10,719,347 equity shares of Rs10 each for cash at a price to be decided through a 100-per cent book-building process.

The issue would constitute 13 per cent of the fully diluted post-issue paid-up capital of Mahindra Holidays, and includes a pre IPO placement up to 3 per cent. The issue comprises a fresh issue of 4,122,826 equity shares and an offer for sale of up to 6,596,521 equity shares by Mahindra Holdings.
 
The equity shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.