Cox & Kings, IRCTC to launch luxury train by Jan 2010
New Delhi | Monday, Nov 16 2009 IST
The Cox and Kings (India) Ltd, the country's leading travel and hospitality firm, in a 50:50 joint venture with the Indian Railway Catering and Tourism Corporation Ltd (IRCTC), will launch luxury train--Maharajas' Express--by January 2010.
The project entails an investment of Rs 45 crore and ''the train will cover pan-India,'' company CFO Anil Khandelwal said here today, adding that the train has the capacity to carry 84 passengers.
The train, featuring luxuriously 23 carriages equipped with every modern amenity and comfort, will run between Mumbai and Kolkata and traverse through Gujarat, Rajasthan, Delhi and in the next step, it will cover Agra, Khajuraho, Bandhavgarh, Varanasi and Gaya. The travel and hospitality company is planning to raise up to Rs 610.39 crore through an initial public offer, which opens on November 18 and closes on November 20.
Of this, Rs 150 crore will be spent on acquisitions, Mr Khandelwal apprised, adding that the company is already in talks with few Indian firms for the same and has appointed merchant bankers for finalising the deal.
''We will use Rs 150 crore for acquisitions in India as well as abroad,'' he added. However, he did not provide any further details.
The promoters will dilute 29.40 per cent stake through the proposed IPO, for which the price band has been fixed at Rs 316-330.
Of the raised amount, ''about Rs 110 crore will go to those who are diluting their stakes,'' he added.
Of the remaining amount, Rs 130 crore will be utilised for repayment of debt, Rs 60 crore for overseas expansion and Rs 60 crore will be used as working capital.
The company, having pan-India presence with 255 points in 64 locations, earned Rs 100 crore income from operations in the first quarter of this fiscal.
-- (UNI) -- 16DC15.xml
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