SBI buys 2% stake of M

New Delhi, Jan 8 (UNI) Mahindra&Mahindra Ltd today said it has sold two per cent stake of its hospitality arm, Mahindra Holidays&Resorts India Ltd (MHRIL), for about Rs 80 crore to the country's largest bank State Bank of India (SBI).

The company, in a statement, said the equity shares to be transferred to the SBI will be subject to lock-in after the IPO as per Securities and Exchange Board of India (SEBI) regulations.

MHRIL had filed a Draft Red Herring Prospectus (DRHP) with SEBI last month. The IPO is expected to hit the capital market in the first quarter of the next fiscal.

It will offer 10.7 million shares of Rs 10 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 the company, which includes pre-IPO placement up to three per cent.

The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and the Bombay Stock Exchange Ltd.

The Global Coordinator and Book Running Lead Manager to the issue is Kotak Mahindra Capital Company Ltd and the BRLM is HSBC Securities and Capital Markets (India) Pvt Ltd.

Mahindra Holidays&Resorts India Ltd, a leisure hospitality provider offering quality family holidays, is a subsidiary of Mahindra Holdings and Finance Ltd (a wholly-owned subsidiary of Mahindra&Mahindra Ltd).

UNI SBA SR AS1854