Cox & Kings rose 1.92% to Rs 283.40 at 12:07 IST on BSE after the company said its subsidiary formed a commercial partnership with Fonciere des Regions, Europe.
The announcement was made after market hours on Wednesday, 3 December 2014.
Meanwhile, the BSE Sensex was up 45.53 points, or 0.16%, to 28,488.24.
On BSE, so far 48,000 shares were traded in the counter, compared with an average volume of 1.19 lakh shares in the past one quarter.
The stock hit a high of Rs 286 and a low of Rs 279.05 so far during the day. The stock hit a record high of Rs 366.30 on 16 September 2014. The stock hit a 52-week low of Rs 94 on 11 December 2013.
The stock had underperformed the market over the past one month till 2 December 2014, falling 6.11% compared with 2.07% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 6.24% as against Sensex's 5.27% rise.
The mid-cap company has an equity capital of Rs 84.66 crore. Face value per share is Rs 5.
Paris-headquartered real estate firm Foncie des Rions SA will build hotels in European cities and lease them to the European leisure travel unit of Cox & Kings, under a long-term agreement.
The Cox & Kings European unit called MEININGER Holding GmbH will manage the hotels under the MEININGER brand. The agreement was signed between MEININGER Holding and Foncie des Murs, a subsidiary of Foncie des Rions.
The investment would be primarily in European gateway cities in the initial phase. Initial targets include Amsterdam, Barcelona, Brussels, Berlin, Geneva, Hamburg, Frankfurt, London, Madrid, Milan, Munich, Paris, Rome, Vienna and Zurich. In addition other cities in both Western and Eastern Europe where the MEININGER brand is likely to be popular are also planned for expansion, Cox & Kings said in a statement.
Under the agreement, up to 400 million euros could be invested over the next four years, subject to approval by both parties on a hotel by hotel basis, through long-term leases, Cox & Kings said.
MEININGER will also provide other services appropriate to its brand, the statement said.
Cox & Kings last month raised Rs 1000 crore by issuing 3.27 crore equity shares at Rs 305 each through qualified institutional placement (QIP).
On a consolidated basis, Cox & Kings reported a net loss of Rs 94.23 crore in Q2 September 2014 compared with net profit of Rs 263.73 crore in Q2 September 2013. Net sales rose 5.9% to Rs 867.47 crore in Q2 September 2014 over Q2 September 2013.
Cox & Kings is the longest established travel company in the world. Its distinguished history began in 1758 when it was appointed as general agents to the regiment of Foot Guards in India under the command of Lord Ligonier.
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