No plans for debt restructuring – Cox & Kings

No plans for debt restructuring; leisure will be focus area; will look for opportunities as they come: Cox & Kings

A.B.M.Good, Chairman & Anil Khandelwal, CFO of Cox and Kings India said that the company will look at the opportunities as they come. Cox & Kings is a dominant player in leisure, which will be a focus area for the company. The company is not planning for restructuring of debt, they added.

Cox & Kings lists at Rs 343.20 per share as against its issue price of Rs 330 per share. The share is trading up well over 13% on the listing day. This has been one of the best listing in recent times. The stock touched a high of Rs 400 and a low of Rs 343.20 on the listing day.

Managing Editor of CNBC-TV18, Udayan Mukherjee believes that Cox & Kings has very good business model. “The company is operating with 40% margins. The issue was priced at Rs 330, which is comparatively cheap with respect to its peers in terms of valuation.”

He expects the stock not to drift below its issue price. With Rs 20 earnings, the stock can go as high as Rs 400 in future, he says.

The initial public offering (IPO) of 18,496,640 equity shares, which opened during November 18-20, had received good response from investors, especially qualified & non-institutional investors and was subscribed 6.31 times. The price band was at Rs 316-330/share.

The company has collected over Rs 610 crore from the issue, out of which it will get over Rs 509 crore and the rest will be given to shareholders like Lehman Brothers Opportunity Limited, Deutsche Securities Mauritius Limited and Merrill Lynch Capital Markets Espana, S. A., S. V.

The objects of the fresh issue are to provide funding for repayment of loans; acquisitions and other strategic initiatives; investment in overseas subsidiaries and investment in corporate office & upgrading our existing operations.

Cox and Kings India is the parent of UK-based unlisted Cox and Kings and accounts for nearly 66% of the group’s global revenues.

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