Cox & Kings India IPO Subscribed 6.3 Times-National Stock
Exchange
MUMBAI -(Dow Jones)- The INR6.10 billion ($131 million) initial public
offering of travel and leisure company Cox & Kings (India) Ltd. was subscribed
6.3 times when the book closed Friday, according to data on the National Stock
Exchange.
Bids for the issue came across the INR316-INR330 indicative price band, the
data showed. The share sale had begun Wednesday.
The issue of nearly 18.50 million shares, which includes an allotment of more
than 2.74 million shares to anchor investors, received bids for nearly 99.13
million shares, the data showed.
The IPO consists of a fresh issue of 15.45 million shares and an offer for
sale of nearly 3.05 million shares by Lehman Brothers Opportunity Ltd., Deutsche
Securities Mauritius Ltd. and Merrill Lynch Capital Markets Espana, S.A.
"We estimate Cox & King's revenue and net profit to witness a compounded
annual growth rate of 27.4% and 37.7% over the fiscal year ended March 31, 2009,
to the fiscal year ended March 31, 2011, respectively," Mumbai-based Angel
Broking said in a note.
"On the lower and upper end of the price band, the stock would quote at 16.5
times and 17.3 times its post-diluted earnings for the fiscal year ended March
31, 2011, respectively," the note added. The house has a "subscribe" call on the
IPO.
Cox & Kings operates in the leisure travel, corporate travel, foreign exchange
and visa processing segments.
It has 255 points of presence in India, covering 164 locations through a mix
of branch sales offices, franchised sales shops, general sales agents and
preferred sales agents.
It has operations in 19 countries besides India through subsidiaries, branch
offices and representative offices.
The company intends to use the issue proceeds for repaying loans, strategic
initiatives, investment and other general corporate purposes.
-By John Satish Kumar, Dow Jones Newswires; +91-22-22884212; john.kumar@
dowjones.com
(END) Dow Jones Newswires
11-20-090742ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|