Mahindra & Mahindra Ltd.

Mahindra & Mahindra (M&M) would be putting on block 34,00,000 equity shares of Mahindra Holidays & Resorts India, representing 4.02% of the equity share capital of the company. The sale, which will be exclusively through a separate window provided by the stock exchanges for this purpose, will commence on March 7 and close on the same day. The decision apparently is in order to meet SEBI norms of 25% minimum public shareholding.

However, the decision of sale by M&M through the OFS (Offer for Sale) route made by the stock exchanges comes as a surprise since back only on January 21, 2013; Mahindra Holidays’ board approved the issuance of equity shares through an Institutional Placement Programme (IPP).

Further this development to offer 4.02 per cent stake in Mahindra Holidays through the OFS route would bring down the parent company’s holding in the group company to 78.67%. Meanwhile, apart from the promoters, FIIs hold 3.57% stake in the equity of Mahindra Holidays and DIIs' stake is 0.49 per cent. Others, including retail investors, hold 13.25% stake in the equity of Mahindra Holidays.