Cox and Kings plans to sell 23.75 pct stake in IPO

MUMBAI, Jan 29 (Reuters) - Travel services firm Cox and Kings (India) Ltd said on Tuesday it has filed preliminary papers with the market regulator to sell 8.7 million shares, or 23.75 percent, through an initial public offer.

The company, in its draft offer document, said it plans to sell at least 10 percent to certain investors ahead of the IPO.

The money would be used to set up new outlets, invest in overseas units and for acquisitions.

Cox and Kings has identified potential targets and plans to use 1 billion rupees from the share sale towards the purchases, it said.

The company is in the process of signing an initial agreement with state-run Indian Railways Catering and Tourism Corporation Ltd for running a luxury tourist train, it said.

Cox and Kings posted a standalone net profit of 137.9 million rupees on a total income of 650.5 million rupees for the six months ended September, the draft document showed.

Enam Securities is the lead manager to the issue. (Reporting by Jasudha Kirpalani, Editing by Ramya Venugopal)