Cox & Kings plans to raise Rs 300-350 crore via QIP
The company has a gross debt of about Rs 5400 crore and net debt of about Rs 4000 crore. It recently sold its non core camping business in a bid to reduce debt.
The company plans to raise capital in a bid to cut debt on books. Axis Capital is likely banker to the QIP and the pricing is likely to be as per SEBI formula.
Brokerages remain bullish on the stock and in a recent report Edelweiss stated that the stock has a potential of re-rating if it gets successful in debt reduction.
The company, which has a gross debt of about Rs 5400 crore and net debt of about Rs 4000 crore, had recently sold its non core Camping business in a bid to reduce debt.
While they are to receive about Rs 850-900 crore from sale proceeds of camping business, capital raising will further put them in a better position on the debt front.
The stock has gained nearly 16 per cent over the past one month and has nearly doubled in four months.
At current market price of Rs 298, the stock trades at attractive valuations of P/E ratio of 10.8x for FY16, compared peer Thomas Cook, which trades at P/E of 20x Fy16.
Following are brokerages recommendations on the stock:
The stock ended at Rs 300.05, up 1.32 per cent, on the BSE. It touched a high of Rs 305 and a low of Rs 294 in trade today.