New Delhi When hoteliers and tour operators are struggling with the combine effect of recession and swine flu, Mahindra Holidays and Resorts India Ltd (MHRIL), a part of Mahindra Group, is coming up with Initial Public Offer (IPO) to raise resources to fund its existing and expansion projects in the country.

“We were not affected by recession at all. In fact we have made some significant growth during this period when other industries have suffered. The fact that we were not hit with the wrath of recession is because our company does not depend on occupancy level but depends on membership fee, an annual subscription fee (ASF) and revenue we generate from our resorts, which is increasing. In 2005 we had 28,491 members which has increased to a staggering 92,825 during this year, which is a good news in the wake of global downturn,” Ramesh Ramanathan, Managing Director, said in a press conference in Delhi, on Saturday.

The group has fixed the price band between Rs. 275 to 325 per equity share for an IPO offering of 92,65,275 shares. The Issue opens on June 23 and closes on June 26, 2009. 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 Limited (the “selling shareholder”).

According to the company MD, “We have a pan-India presence and with increasing popularity of our resorts and increasing membership we are worriless about the future of our company. We are a zero debt company. We are also eyeing expansion by making our presence in Tungi (near Lonavala) and at Theog (near Shimla) in 2009-10. We are excited about these projects and are hoping that both projects come out well. Also, we are planning to introduce a budget holiday product in coming time to diversify our presence in India.”

He added, “In terms of geographical expansion we are planning to roll out Mahindra products in tier-II and tier-III cities. Also, we have certain plans to launch camp sites (tented accommodation) near our resorts to extend our reach to teenagers, adventure enthusiasts and for those who want to be felt in the laps of nature. Along with all other facilities we are also planning to promote our spa brand ‘Svaastha’ in cities.”