M&M to float Club Mahindra IPO by mid 2008

New Delhi, Dec 2: Mahindra&Mahindra today said, its wholly-owned subsidiary, Club Mahindra, will enter the capital market through an initial public offer (IPO) by mid of next year.

''We will launch our initial public offer (IPO) by mid 2008,'' M&M Vice Chairman and Managing Director Anand G Mahindra told reporters here on the sidelines of India Economic Forum.

He said the quantum of money to be raised will be decided within the next two-three months.

The company is yet to file the draft red herring prospectus (DRHP), he said.

The Mahindra&Mahindra board has already given its green signal to the proposed IPO.

The company has plans to enter Bangkok and Austria and nationally it plans to add 20 more resorts under its 'Club Mahindra' product including in north and western regions in the next 12 to 18 months.

Under its 'Zest' brand the company will add three more resorts.

Speaking to reporters on various issue, Mr Mahindra said the rupee appreciation can definitely hit the country's growth.

However, he said it would hardly any impact on his group, as it has continuously launching new products in the market.''But for small and medium enterprises, it is very dangerous.'' He said the government should reduce the interest rates to offset the impact created by rupee appreciation.

A sharp hike in the value of the rupee, which has climbed 12 per cent against the dollar since the beginning of 2007, is throwing India's small and medium auto component makers out of gear.

On an average, a stronger rupee has shaved off 10 per cent from the export revenues of many small component makers in this period.

Mr Mahindra also emphasised on building infrastructure, saying it is the only area where we are behind China.

''We need to work on this through public-private partnership,'' he said adding that India's intellectual strength and innovative capabilities are better than China's.

UNI