Cox & Kings postpones IPO plans

Tour operator Cox & Kings (C&K) India has postponed its initial public offering (IPO) plans by 6-12 months.

According to a company spokesperson, the ongoing volatile market scenario is a major factor for the company's decision.

Cox & Kings Chairman Anthony BM Good had last year told Business Standard that the company had plans to get listed by early 2006.

"The markets having turned absolutely down, we will have to wait for the right moment to be listed," said the spokesperson.

The market is so merciless that even a 1:1 bonus issue offered by engineering company Larsen & Toubro, after a gap of 20 years, was given a thumbs down response.

"So, for some time more, C&K India will have to stall its restructuring and expansion plans, including acquisitions. C&K India, with a low capital base will have to depend solely on the markets to raise capital for expansion," said a Mumbai-based travel & tourism analyst.

Indian operations being the most remunerative for the group, C&K has plans to shift its headquarters from UK to India, Good had said earlier.

C&K registered a total revenue of Rs 700 crore in 2005, more than 50 per cent of which was generated by its Indian operations.

Currently, C&K India is a subsidiary of C&K UK. C&K India has plans to buy out C&K UK to become the promoter company. Automatically, the stake of C&K UK in its sister concerns in Japan, US, Italy, Turkey and Australia will be transferred to C&K India, post-buyout.

The Kerkar family (of hotelier Ajit Kerkar) and C&K UK are major stakeholders in C&K India. C&K, established in 1758, is one of the oldest existing companies in the world.