Sunday, November 15, 2009

Cox and Kings IPO - Analysis, Recommendation and Review

Cox and Kings, one of the top holiday service providers in India, is coming out with an 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 will open for subscription on November 18, 2009 and will close on November 20, 2009.

The company has fixed the price band for its initial public offering (IPO) at Rs 316-330/share. The equity shares are proposed to be listed on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. 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 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 company will raise more than Rs 610 crore from the issue, out of which it will get over Rs 509 crore and the rest will be given to shareholders. CARE has assigned a 'CARE IPO GRADE 4' to the proposed IPO.

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.

We would recommend investors to invest into this issue. Hopefully this IPO will make money for investors after some of the recent disasters!

For subscription details, checkout this post.

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