Cox and Kings India plans fund raising for acquisitions

Travel operator Cox and Kings India is seeking shareholder approval to raise up to Rs20 billion via equity and debt to fuel its growth plans including domestic and overseas acquisitions, a senior official said on Tuesday.

"The primary objective for us is to fund our acquisition plans. We are currently looking at acquisitions both domestically and internationally," chief financial officer Anil Khandelwal told Reuters.

The firm had not yet finalised an acquisition target but was hoping to close a deal by the end of the current fiscal, he said.

Cox and Kings India will raise up to Rs10 billion in equity and an equal amount as debt, he said.

The equity portion can be raised "by way of domestic or international offerings," Khandelwal said.

The firm is looking mainly at developed English-speaking countries to buy travel firms, he said.

"We are looking at Europe, we are looking at Australia and US... specifically our preference would be where there is an English-speaking country," he added.

The company, the parent of UK-based unlisted Cox and Kings, completed a Rs6.1-billion initial public offering of shares in December last year.

In December, its unit had acquired Australia-based MyPlanet Australia Pty Ltd & Bentours International Pty Ltd from a unit of TUI Travel Plc.

Its consolidated net profit for Jan-March rose 35% to Rs449.9 million.

At 10.31am Cox and Kings shares were up 2.44% at Rs507.4 in a weak Mumbai market.