Cox & Kings shares surge 5 per cent on fund raising plan

MUMBAI: Shares of travel services firm Cox & Kings today surged about 5 per cent after disclosing plans to raise $ 137.75 million (about Rs 765 crore) by selling stake in its UK-based subsidiary.

Following the announcement, shares of the company jumped 7.92 per cent during the day and finally settled at Rs 147, up 4.51 per cent on the BSE.

At the NSE, the stock closed at Rs 147, up 4.85 per cent. Cox & Kings will utilise the fund mainly to cut debt in its subsidiary, Prometheon Holdings UK, that currently stands at $ 330 million.

"On August 21, 2012, investment funds advised by Citi Venture Capital International (CVCI Private Equity) entered into binding agreements with Cox & Kings Ltd (CKL) to acquire a significant minority stake in its wholly owned subsidiary, Prometheon Holdings UK Ltd (Prometheon)," CKL said in a statement.

In May, the company's board had approved raising additional capital of up to $ 140 million in Prometheon.

Meanwhile, rally in the stock sharply outperformed the sluggish broader market, where the Sensex closed at 17,846.86, down 38.4 points or 0.21 per cent.