Cox & Kings India Ltd. got lukewarm response atleast by Retail Investors. Overall subscription was moderate at above 6 times but Retail Investors who got their fingers burnt in all IPOs from ADANI POWER...NHPC...IBPOWER... and today`s DEN... given lukewarm response to CNK despite being with good fundamentals. I think that Retail Investor will have to regret.
As far as valuation for COX & KINGS are concerned though they dont left very much on the table for investors but still it seems that the investors will get some thing from it. There are mainly two listed companies in this space THOMAS COOK and INTERNATIONAL TRAVEL HOUSE. THOMAS COOK is trading at PE of 50.16 and ITH at 12.83 with average of 42.26 giving Fair Value of Rs. 421 and on Market Cap to Sales basis THOMAS COOK is trading at 4.80x and ITH at 1.23x with average being 4.04x thus giving Fair Value of Rs. 184.29 overall Fair Value comes to around 303 with is not at much discount from its issue price of Rs. 330 like others.
It may not give any immediate listing returns but will give good returns.
CNK is good quality paper which got good response from foreign invesors and HNIs. I may list at around 350-360 ( 10% premium) although grey market premium is Rs 6-8. Oil India also was also commanding grey market premium of Rs 30-40 but it went past 1140 on list day (IPO price Rs 1050). Now OIL India priceis above 1200. So I think CNK shall also hold to its price and shall give good returns in six months ( can go upto Rs 400).
can you please tell me: what cox and kings going to do with this subscription.
what is their credit worthy fundamentals for the market to value.
WHAT IS THEIR ASSET IN THIS TRAVEL MARKET.
Is it good will
is it a business like reliance petroleum- which cannot be started over night and needs gestation period.
okay: cox and kings: what is their line of business- to my knowledge
1. Issuing tickets to various airlines
2. In bound tours
3. Out bound tours
Other than that do you have any thing in your mind- According to me NOTHING
This business: if you decide to start tomorrow: just one month.
You can get approved by IATA for issue of tickets. Due to online sales- now no big fuss.
In bound tours: There are many subagents for Nepal, gujarat and tamil nadu- I can book and delegate to specialists in respective areas
Out bound tours: there are many agents to take care of your booking in various countries and they will line up to serve
TRAVEL AND HOSPITALITY BUSINESS NEEDS NO BIG INFRA STRUCTURE AND ANY ONE WITH RUPEES TEN LAKH CAN START THEIR OWN AND THRIVE RATHER THAN WHITE ELEPHANTS LIKE COX AND KINGS DOING IT
INTERVIW WITH NIRMAL JAIN MD INDIAINFOLINE ON MONEYCONTROL
On the subject of fresh paper, you have managed the Cox and Kings issue. What kind of response did you see across various investment categories?
A: The response has been very good and that shows that if the issue is of a good quality company and reasonably priced then the retail investor can also participate. We have got more than 50,000 applications in this particular issue. There is appetite in the market. However, if valuations are very aggressive then investors burn their fingers. This is the background to this issue because in the earlier issues, the retail investors have not made that money. So there are concerns whether the retails will participate or not. However, we are very happy that retail investors also participated very well in the issue.
Boss, its not the 10 lakh that one has to get licenses, people must come and book tickets with you. TO dole out offers, at dirt cheap prices, tie ups with hotels and locations, special privileges...et all.. its not easy.
As economy vrooms, people(even now) go on recreation; though a desire, see how much it has picked up oflate. THings like medical tourism..just imagine..
Forex is one key profit centre....one must understand all the nuances of working of such a big travel giant to spot opportunities....
To sit on the side, n crib is easy!
Regards
It is 330/- per share. I prey god to list the share at 1330/- per share but I know god will not hear my lour request and may allow the scrip to manage listing at or slightly above the issue price.
But my advise to retail investor is not to offload the share on day one. share may touch 400 in one week horizon.
| NIFTY 
