Kuoni Travel India, which has completed its legal merger with Sita World Travel in November 2000, is on the lookout for further acquisitions as part of its inorganic growth plan. The proposed public issue of around Rs 125 crore - a disinvestment of 25 per cent of the paid-up-capital - would provide the company with the much needed currency (stock) for acquisition, officials said.

The public issue, which will be through the book-building route, would expedite the process for further acquisitions at a better pace. In normal circumstances, the Indian subsidiary has to undergo numerous formalities for roping in funds from the parent in a crunch situation of a takeover, officials said.

The Indian travel industry is in the process of consolidation and the largely unorganised travel trade is likely to see a flurry of activities on the acquisition front in the current fiscal. The proposed issue would also help in improving the company's image as well as retain employees through stock-options among others, officials said.

Meanwhile, the company is laying major thrust on the corporate travel segment by securing the account of Indian subsidiaries of the global conglomerates tied up with the parent. Currently, corporate travel segment contributes around 10 per cent to the total turnover while the outbound and inbound segments accounts for 50 per cent and 40 per cent respectively.