Cox & Kings fixes IPO price band at Rs 316-330

Leading tour and travel operator Cox and Kings today said it has fixed the price band for initial public offer (IPO) between Rs 316 and Rs 330 per share.

The tour and travel operator expects to mop-up around Rs 610 crore from the issue to fund its expansion.

On offer will be 1.8 crore shares of Rs 10 each for cash at a price to be decided through 100 per cent book building process. The issue will open on November 18, 2009 and close on November 20.

"The issue comprises a fresh issue of 1,54,50,000 equity shares and an offer for sale of 3,046,640 equity shares by Lehman Brothers Opportunity, Deutsche Securities Mauritius and Merrill Lynch Capital Markets Espana," Cox & Kings Chief Financial Officer Anil Khandelwal told reporters here.

The company plans to use the issue proceeds to fund its acquisitions, repayment of loans and also to fuel other business expansion plans, Kandelwal said.

The issue reserves up to 2 lakh equity shares for eligible employees.

The total issue would constitute 29.40 per cent of the fully diluted post issue paid-up capital of the company and the net issue will constitute 29.08 per cent of the fully diluted post issue paid-up capital of the company, Khandelwal said.