Cox & Kings to raise funds through IPO route

Travel and leisure business major Cox & Kings India is set to tap capital market with an initial public offer of 18,496,640 equity shares of Rs 10 each for cash through the 100% book building route. The company, part of the UK-based Cox & Kings, has filed the draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for the issue.

The issue would comprise 29.40% of fully diluted post-issue paid-up capital, while the net issue will constitute 29.08% of the fully diluted post-issue paid-up capital. India Infoline has been appointed the sole book running lead manager to the issue.

The IPO would include a fresh issue of 15,450,000 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.

The company is also planning a pre-IPO placement with some investors and expects to complete the issuance before the filing of the red herring prospectus (RHP) with the registrar of companies.

A maximum of 50% of the net issue will be allocated on a proportionate basis to qualified institutional buyers, out of which 5% will be for allocation on a proportionate basis to mutual funds only.

The QIB portion will also include the anchor investor portion in accordance with applicable SEBI rules. Nearly 15% of the net issue will be made available for allocation on a proportionate basis to non-institutional bidders and up to 35% of the net issue would be earmarked for retail individual bidders.