cox and kings, cox and kings holidays,Cox and Kings IPO gets 60% subscription on debut day

Initial public offering (IPO) of Cox and Kings (India) (CKIL), a leading global tour operator has received a 60% subscription by its debut day. The public issue which closes on Nov. 20, 2009 has a price band in the range of Rs 316-330 a share.

Around 7 p.m., a total of 9.49 million bids were obtained out of which 295,600 bids were obtained at a cut-off price.

Qualified institutional buyers led the race subscribing 1.08 times. This was followed by non institutional investors and retail individual investors who subscribed 0.83 times and 0.05 times respectively.

The company has proposed a public issue of 18.50 million equity shares. The issue consists of a fresh issue of 15.45 million equity shares and an offer for sale of 3.05 million equity shares at a price to be decided through 100% book building process. The issue consists of a fresh issue of 15.45 million equity shares and an offer for sale of 3.05 million equity shares at a price to be decided through 100% book building process.

The company is likely to raise up to Rs 5.10 billion from the public issue. It has outlined a capex plan of Rs 4,021 million which will be used from the issue proceeds. The proceeds from the issue would be used for repayment of loans investment in overseas subsidiaries and in corporate office and upgrading its existing operations.

The equity shares of the company would be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) respectively.

indianachu : 05