Tour and travel firm Cox & Kings today said its board has approved the demerger of foreign exchange division into a separate financial services company to be named Cox & Kings Financial Service Ltd (CKFSL).
The demerger is effective April 1, 2017, Cox & Kings said in a statement.
Cox & Kings Group CEO Peter Kerkar said: "Strong macro drivers coupled with a strategic brand presence will enable CKFSL to flourish".
There are abundant, large-sized avenues for natural product diversification and the timing of this demerger is most opportune, he added.
With a view to enable the forex business to capitalise on growth opportunities in an independent manner, it has been decided to demerge it into a separate company, Cox & Kings said.
CKFSL is also in the process of applying for a license to operate as a non-banking finance company (NBFC) and will add multiple product lines to its suite of offerings over time, including holiday finance, overseas student finance etc aimed primarily at the travel and tourism sector, it added.
Shares of Cox & Kings today closed at Rs 217.50 per scrip on BSE, up 2.50 per cent from its previous close.
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