Mahindra Holidays and Resorts India Ltd IPO Message Board (Page 17)

Mahindra Holidays IPO Review - Indian Express

By Abhay Rao

Mahindra Holidays and Resorts India Limited will launch its initial public offering from June 23, 2009. The issue offers 9.27 million shares of Rs.10 each through a 100% book building route. Mahindra Holidays' flagship brand is Club Mahindra Holidays, which has 27 resorts in India and Thailand and has 96,067 members.

For full review:
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It's suckers business. They started with 18cr. capital, built resort on memebers money (and member have only right to use for 25 years). Now selling company for 2800cr. (~35xPE multiple).
They have reached membership enrolment limit and may only able to enrol 20k members, which will limit its growth as they do not have rooms accommodation =1200x50=60K against they have 100k memebers.
As there is degrowth u can not apply PEG multiples while valuing this company. And PE multiple or Mktcap/Sales multiple is best to value this company. It is very expensive company on this parameter. AGAIN DAYS of Greater Fool !! theory coming to mkt Some greater fool will by my share at 40-50Xmultiples.

Read this blog .... 90%bloggers have -ve feedback and sucking their thumb .......
http://www.enidhi.net/2007/02/never-go-for-club-mahindra-membership.html

This bankers are keeping Grey mkt busy to develop momentum so people can apply.
They may keep counter hot for some time after listing, but i have no doubt that price will not sustain.

having the first mover advantage will be fetching good premium

Offer price high as industry will continue to suffer from economic slowdown in the near term and will remain plagued with customer dissatisfaction

CM RATING 38/100
Mahindra Holidays & Resorts

Strengths

Has a strong parentage of the Mahindra group, which is among the top 10 industrial houses in India. Club Mahindra has the highest brand equity among timeshare companies in India. In terms of market share, accounted for 72% of the total active members across the vacation ownership industry in India with Resort Condominiums International (RCI) up to end May 2009.
The number of memberships including all brands had a CAGR of about 34% over the last four years from 2,8491 members end of the fiscal ending March 2005 (FY2005) to 92,825 members end FY 2009 and further to 96,067 members end May 2009. The number of members for Club Mahindra had a CAGR of 33% over the last four years from 28,491 members end FY 2005 to 88,998 members end FY 2009 and further to 91,987 members end May 2009.
Weaknesses

Has 1,261 apartments/cottages, meaning it can serve 63,050 (1261x50 weeks) members if all its cottages are occupied. However, there are 96,067 members. As per the management, of these, about 63,000 members are eligible for vacation. The logic being that members who have chosen EMI payment (94% of the new members) would be eligible for vacation only 12-18 months from the date of membership. Nevertheless, there is not enough capacity to properly service all its members. The holiday traffic would not be throughout the year but during specific periods. This compounds the unavailability problem. This may lead to dis-satisfaction of members. Currently, there are 105 consumer cases pending.
Though new members are being added, the reputation of the business is not encouraging. The vacation ownership industry in India has suffered from loss of consumer confidence by virtue of inappropriate business practices by certain companies, resulting in a general disgruntlement against the vacation ownership industry.

Sales grew 11% to Rs 393.19 crore in FY 2009 as against more than 50% growth in earlier years. Net profit dipped 5% to Rs 79.80 crore as against close to 100% growth in the earlier years. The new member addition has also seen a dip in FY 2009 due to economic slowdown.

Valuation

At the price band of Rs 275 – 325, PE works out to 28.9 – 34.2 times on consolidated FY 2009 EPS of Rs 9.5, The market capitalisation to sales ratio comes to about 5.9 – 7 times, whereas that of the hotel Industry on a trailing 12-month (TTM) basis is 2.4 times. Thus, the offer price is very high.

I think Mr. BHIMANI is right (34. BHIMANI ) the ipo is good but bcoz of budget cant say anything. as this time market have more expectation from budget & if the expectation does not go right then market can come down & in that case cant say how the listing will be. so be carefull bcoz of budget.

INTERNATIONAL TOUR ORGANISER LEGEND
"COX AND KINGS" [INE008I01018] COMING SOON WITH IPO

hi all friends, if any one would like to buy one lac app. of this ipo, can contact me. we will fill may be 50 applications. thanks jaipur. rahuldar@yahoo.com

100 rs

What is the greymarket Premium?

HI FRIENDS,
MAHINDRA HOLIDAYS & RESORTS INDIA LTD. [INE998I01010]
IS GOOD GROUP, ATTRACTIVE PRICE BAND (275 TO 325 / SHARES)
EVERYTHINK IS OK, BUT DONT FORGET THAT THE BUDGET ON HEAD.
SHRI PRANAV MUKHARJI IS VERY POWERFULL PERSON AS A F.M.. BUT, THIS IS HIS FIRST
BUDGET.
WHAT IS MARKET EXPACTATION..?
WHAT WE PROVIDE..?
BETWEEN THIS CONFUSION MARKET MAY BE WORK IN VERY HEAVY
VOLATILITY ZONE.
SO, I ADVICE TO MY ALL FRIENDS PLEASE TAKE SAFE WAY.

THANK YOU.

mr. guddu mind your language this platform not for your thought
this site for serious investor who know about market humor

What is PE of Mahindra Holiday???

Mahindra Holiday iop prise is very high

Mahindra Holidays and Resorts India Ltd gray market primum 50/-

what is the lot size.

what is the lot size.

this tis a good ipo but rice band is to high because this ipo wiill be purchasing at the time at loyer price

Mahindra Holidays fixes IPO price band at Rs 275-325/sh
Source : moneycontrol.com

Mahindra Holidays and Resorts India (MHRIL), one of the leading leisure hospitality providers in India offering quality family holidays and a part of Mahindra Group, is entering the capital market with an initial public offering of 92,65,275 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The bid/ issue will open on June 23, 2009, and close on June 26, 2009. The IPO price band is fixed at Rs 275-325 per share. The size of the issue will be Rs 301 crore at the upper end of the price band and Rs 255 crore at the lower end of the band. M&M (Mahindra and Mahindra) will raise Rs 90.7-123 crore from the sale of 33 lakh shares.

The issue has been assigned 4 out of 5 IPO grading by Fitch Ratings India Private Limited reflecting 'above average fundamentals’ of the issue relative to other listed equity securities.

The issue comprises a fresh issue of 58,96,084 equity shares and an offer for sale of 33,69,191 equity shares by Mahindra and Mahindra (the “selling shareholder”). The issue would constitute 11.0% of the fully diluted post-issue paid-up capital of the company.

The proceeds from MHRIL’s proposed issue are expected to be deployed in the setting up of new projects and expansion of some of the existing resorts, to provide a larger range of resorts, and hence a wider choice of holiday destinations to members.

price band is 275 to 325 and lot size is 20...