Cox & Kings to raise Rs 1,200 cr to reduce debt

Cox & Kings has a debt of around Rs 4,200 crore and over a third of it was drawn to finance the purchase of UK travel company Holidaybreak in 2011

Tour operator Cox & Kings plans to raise Rs 1,200 crore this financial year to trim debt.

The company board on Thursday approved plans to raise funds through the issuance of equity shares, convertible bonds or qualified institutional placement route.

Cox & Kings has a debt of Rs 4,200 crore and over a third of it was drawn to finance the purhase of UK travel company Holidaybreak in 2011.

The company has been aiming to reduce its finance cost and in June, it sold Holidaybreak’s camping division to French travel company Homair Vacances for about Rs 892 crore. Cox & Kings said it would use the proceeds to retire a portion of its debt before maturity.

In FY14, the company incurred Rs 323 crore in finance cost. The Indian operations contribute about 25 per cent of the company’s consolidated revenue and the balance comes from overseas business. In the last financial year, the company reported consolidated earnings before interest, taxes, depreciation, and amortization of Rs 1,100 crore and Holidaybreak’s share was about Rs 400 crore.