Mumbai: Shares of travel operator Cox and Kings (India) Ltd isted at Rs304.10 on the BSE on Friday, about 8% lower than its issue price of Rs330 a share, but soon surged to Rs415.90.
“We expected it (the rise), but not this much. We expect the movement to continue because of its better business model compared to peers,” said Neha Pathak, analyst at KR Choksey.
“Its presence across the globe is the key driver for it”.
Cox and Kings (India) is the parent of UK-based unlisted Cox and Kings, and accounts for nearly 66% of the group’s global revenues. It operates in 20 countries across the globe through subsidiaries and branch offices.
The firm raised Rs6.1 billion through the IPO, of which Rs5.1 billion will be used to retire debt and for acquisitions.
The remainder would go to Deutsche Securities Mauritius Limited, Merrill Lynch Capital Markets Espana and Lehman Brothers Opportunity Ltd, who sold stakes in the firm during the IPO.
Cox and Kings chairman Anthony B.M. Good told reporters growth in India would be driven by the outbound travel segment.
“It’s difficult to pick one sector growing faster than the others, but if I had to, it would be outbound,” he said, adding easier foreign exchange regulations over the past 10 years were contributing to the outbound market.
He, however, did not give a revenue projection for the fiscal.
“As the market grows we shall grow with it.”
At 1:00pm, Cox and Kings India shares were trading at Rs408.05 on the BSE, up nearly 24%.