Cox and Kings IPO Analysis Allotment Status Listing

Cox and Kings IPO Analysis Allotment Status Listing

Sharekhan expects the growth momentum in Cox and Kings to continue in the coming years. In its IPO note, the brokerage says, “Our very

rough estimates suggest that at the lower and at the upper end of the price band the stock would discount its FY2010E earnings by 15.5x and 16.2x respectively and its FY2011E earnings by 11.5x and 12.0x respectively. That is reasonable compared with the valuations of its international peers.”

Cox and Kings has hit the primary market today with the public issue of 1.85 crore shares. The tourism company has fixed the issue in price band of Rs 316-330 per share of face value Rs 10 each.

Issue Detail:

»»  Issue Open: Nov 18, 2009 – Nov 20, 2009
»»  Issue Type: 100% Book Built Issue IPO
»»  Issue Size: 18,496,640 Equity Shares of Rs. 10
»»  Issue Size: Rs. 584.49 – 610.39 Crore
»»  Face Value: Rs. 10 Per Equity Share
»»  Issue Price: Rs. 316 – Rs. 330 Per Equity Share
»»  Market Lot: 20 Shares
»»  Minimum Order Quantity: 20 Shares
»»  Listing At: BSE, NSE

Networth : 227.94 + 19.5 = 247.44 crore (Increased by 19.5 crore because of money recieved from rights issue)

EPS : 13.24
Book value per share :52.20
We can see EPS as well as Book value both have decreased substantially after rights issue.

P/E FY09 with new values will be 23.86 to 24.92
Offered Price is 6 * Bookvalue

Present Fresh issue of 1.54 crores share will dilute EPS further to Rs 10 which will bring P/E FY09 to 31.6 & 33 at lowerband & upperband respectively.

With Raising of 486.64 crore at lower band & 508.20 crore at upper band company can reduce their debt burden & invest in new subsidaries.With this I think company can increase their profit to 80 crore for FY10.EPS will be
around 12.73 ,With this assumption still P/E for FY10 comes out to be 24.80 – 25.90.

Source – http://economictimes.indiatimes.com/

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