SWASTIKA INTELLIGENCE GROUP
SWASTIKA INTELLIGENCE GROUP
IPO NOTE
Cox and Kings (India) Limited
ISSUE DETAILS:
Issue Opens
November 18, 2009
Issue Closes
November 20, 2009
Issue Size
184,96,640 Equity Shares of Rs. 10/- each
Anchor Investor Portion
27,44,496 Equity Shares
Price Band
Rs. 316 to Rs. 330.
Market Lot
20 Equity Shares and Multiple
Industry
Travel & Tourism
IPO Grading / Rating Agency
Grade 4 / CARE
Book Running Lead Managers
India Infoline Limited
SWASTIKA INTELLIGENCE GROUP RECOMMENDATION
Cox & Kings (I) Ltd is a well-known name in Travel & Tourism Industry. Fortunately, major
portion of the issue proceeds shall be utilized towards repayment of loans outstanding in the
company’s Balance Sheet which will add to the bottom line of the company in long run. Issue is
being moderately priced at pre-issue P/E of 14-15 times of its 2008-09 earnings considering an
Industry average of 44.07.
Issue may offer good listing gains to investors as well. We recommend applying for the IPO with
medium-term to long-term investment perspective.
INDUSTRY OVERVIEW:
Travel & Tourism is currently one of the world’s largest economic activities. It is the leading industry in many
countries, as well as the fastest growing economic sector in terms of job creation worldwide.
Emerging economies are expected to be the main engines of growth, generating hundreds of millions of new
travellers from among the growing middle classes in countries like China, India and Brazil – boosting
international travel, but also creating an increasingly vibrant domestic tourism sector.
India is also becoming an increasingly important player in the global tourism economy, climbing to fifth place
in the contribution of its Travel & Tourism Economy to total GDP growth over the next ten years (from 2010
to 2019), with annual growth of 7.7% forecast; China is expected to rank first. During the same period, India
would rank 2nd next to China surpassing the US in generating employment by cr