Cox & Kings to go for IPO issue

Cox & KingsOne of the India's oldest tour operators, Cox & Kings, encouraged by improving market conditions, is set to float Initial Public Offer (IPO), a draft proposal for which has already been submitted to the market regulator, the Security and Exchange board of India. The company had also planned for IPO last year, but adverse market conditions forced it postpone the offer.

The tour operator is expected to raise $100 million through the proposed IPO, at a time when economy has started to show signs of recovery. Indian companies have availed the opportunity of market recovery in the ongoing fiscal raising over Rs 9,000 crore so far.

The company will offer stake sale of 18.49 million, including fresh equity issue of 15.45 million shares. Remaining stocks will be offered by its current financial investors, Lehman Brothers, Deutsche Securities and Merrill Lynch.

Cox & Kings will be the third well-known listed company in the travel space after Thomas Cook and International Travel House to go for IPOs. Shares of Thomas Cook and International Travel House were trading at Rs 53 and Rs 95.95 at the Bombay stock Exchange.