After a rough patch in the primary market where very few companies came out with initial public offerings (IPOs), Mahindra Holidays will hit the capital market on June 23.

The company plans to offer 9.27 million shares of Rs 10 each through a 100 per cent book building route. The price band would be at Rs 275-325 per equity share and the company expects to raise between Rs 250-300 crore through this exercise. The offer will close on June 26.

The proceeds from the proposed IPO will be used to set up new projects and expand the existing resorts.

“This is an IPO that's coming after a relatively dry period in the market and even the Tech Mahindra IPO came at a rather dry period. The success of the IPO will substantially enhance the market capital cap of the group,” said Anand Mahindra, chairman, Mahindra Group.

The Mahindra Holidays IPO is the first but not the last that will hit the markets. Merchant bankers expect more companies to tap the IPO route especially those that had shelved their plans due to the downturn in the markets.

In the next few months, about 17 companies that have received regulatory approval from SEBI are likely to enter the market, collectively raising about Rs 7000 crore. Clearly, the IPO market is set for better days ahead.