Less than a year after listing on the bourses, Cox & Kings (India) , a travel firm, is already hungry for a bigger pie of the domestic and foreign markets.
The companyhas said it is is looking to raise Rs 2,000 crore, in equity and debt, to fund its expansion plans.
In a filing to the BSE, the company also proposed a name change from Cox & Kings (India) Limited to Cox & Kings Limited in a bid to give a global flavour to the entity.
The decision to raise such a large amount came as a surprise to many, since Cox & Kings (India) had revenues of just Rs 399 crore in the financial year 2009-10 on a consolidated basis. The company’s market capitalisation on the BSE, as on June 21, stands at Rs 3,116 crore.
Shares of the company closed at Rs 495.30, up 3.02% on Monday on the BSE. Promoters hold 63.63% in the company as on March 31, 2010.
Talking to Fe, Anil Khandelwal, chief financial officer, Cox & Kings (India), said, ?We have made three important resolutions for shareholders’ approval. These include equity and debt raising of Rs 2,000 crore, enabling the company to invest when required Rs 1,500 crore in acquisitions, and a change in name.? He added that the company is looking at acquisitions in the travel space both domestically as well as in the foreign markets.
?We are looking at multiple acquisitions in the travel space. We are looking at companies that can give us profitability on a standalone basis and also complement our presence in the travel space,? said Khandelwal. He indicated that shareholder approval will be sought by July third week.