Mahindra Holidays & Resorts India on Sunday announced an additional subscription of equity shares in Great Rocksport Private Limited (“Rocksport”), a company that is engaged in the business of soft adventure-based activities and learning programs.
Currently, the Mahindra Group-backed company holds a 6.67% equity stake in Rocksport.
Mahindra Holidays plan to subscribe additional 4,88,321 equity shares of Rocksport in three installments for a total cash consideration of Rs12 crore.
The first tranche of the acquisition was carried out on Sunday (April 16) when Mahindra Holidays acquired 1,62,774 equity shares in Rocksport for ₹4 crore.
While the second tranche is expected to complete on July 1, when Mahindra Holidays will acquire 1,83,121 equity shares worth ₹4.5 crore.
After completion of the second tranche of investment, the Company’s shareholding in Rocksport will go up from 6.67% to 23.42%.
The third installment will be done on September 1, 2022, with the acquisition of 1,42,426 equity shares for ₹3.50 crore.
The objective of the acquisition is to increase customer engagement avenues, while it is expected to drive growth through cross-selling of products.
In its regulatory filing today, Mahindra Holidays said, “It is expected that the investment in Rocksport will increase 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.”
Rocksport is engaged, inter alia, in the business of undertaking and providing outdoor entertainment, adventure programs, educational adventure tours, and retail of branded adventure products in India. The entire business of Rocksport is operated in India.