CARE assigns grade 4 to Cox and Kings IPO

Cox and Kings (India), one of the recognised holiday brands that serves as a ‘One Stop Shop’ for all travel and travel related products, has been assigned a 'CARE IPO GRADE 4' to the proposed IPO. CARE IPO Grade 4 indicates above average fundamentals, as per the press release.
 
The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market with an initial public offering (IPO) of 18,496,640 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
 
The issue comprises a fresh issue of 15,450,000 equity shares and an offer for sale of 3,046,640 equity shares by Lehman Brothers Opportunity Limited, Deutsche Securities Mauritius Limited and Merrill Lynch Capital Markets Espana, S. A., S. V., (the “Selling Shareholders”). The issue comprises a net issue of 18,296,640 equity shares and a reservation of up to 2,00,000 equity shares for eligible employees. The issue would constitute 29.40% of the fully diluted post issue paid up capital of the company and the net issue will constitute 29.08% of the fully diluted post issue paid-up capital of the company.
 
The equity shares are proposed to be listed on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.
 
Its business can be broadly categorised into Leisure Travel, Corporate Travel, Forex and Visa Processing. It provides end to end travel solutions including land, air and cruise bookings, hotel bookings, in-transit arrangements, local sightseeing, visa, passport and medical insurance assistance and such other destination management services. It also provides value added services viz., customising travel plans for  NRI customers, travel arrangements for Trade Fairs, providing private air charter services, etc. Besides, it offers travel related foreign exchange & payment solutions. In fact, it is one of the first travel companies in India to be granted a license as an Authorized Dealer - Category II under the new licensing regime.
 
In India, the Company has 255 points of presence covering 164 locations through a mix of branch sales offices, franchised sales shops, General Sales Agents (GSAs) and Preferred Sales Agents (PSAs).

India Infoline Limited is the sole book running lead manager to the issue.