Mahindra Holidays acquires additional 16.67% stake in Rocksport; stock jumps ~1%

18 Apr 2022 , 09:56 AM

Mahindra Holidays & Resorts India Limited informed investors that it has agreed to subscribe to an additional 4,88,321 equity shares of Rocksport in three installments for a total cash consideration of Rs12 crore.

The company is already holding a 6.67% equity stake in Great Rocksport Private Limited, a company that is engaged in the business of soft adventure-based activities and learning programs.

After completion of the second tranche of investment, the Company’s shareholding in Rocksport will increase from 6.67% to 23.42%.

The promoter/promoter group of the Company has no interest in the entity i.e., Rocksport.

It is expected that the investment in Rocksport will expand customer engagement avenues for the Company, whereby the Company and Rocksport can engage in multiple formats for its members — especially within resorts of the Company. Further, it is expected that there will be cross-selling of products by both parties for their growth and benefits.

Mahindra Holidays & Resorts India is currently trading at Rs246.15 up by Rs1.2 or 0.49% from its previous closing of Rs244.95 on the BSE. The scrip opened at Rs249 and has touched intraday high and low of Rs249.55 and Rs243 respectively.