Cox & Kings appoints merchant bankers for sale of Meininger business, shares hit all-time low
BusinessToday.In September 5, 2019
Shares of Cox & Kings hit 5% lower circuit on Wednesday after the tour and travel services firm said it appointed merchant bankers for a possible sale of its Meininger hotels business, as it seeks to meet its financial obligations.
The stock price of Cox & Kings India fell 5% to hit the lower circuit, a new 52 week and also an all-time low of Rs 3.61 on Thursday's trading session. Cox & Kings India's share is trading lower than 5, 20, 50, 100 and 200-day moving averages
Overall 4.9 lakh shares and 3.7 lakh shares are changing hands on BSE and NSE, respectively. With high selling interest, there are only sellers offering (48,50,509) and no buyers (0) bidding for the stock.
The stock has underperformed compared to the Travel Support Services sector by 4.94% and has lost over 65% returns in the last 21 sessions.
M-cap wise, the market capitalisation stood at Rs 70.45 crore on Sept 3, when exchange bourses had asked for clarification on the media report quoting "Cox & Kings said to weigh sale of European hotel chain Meininger". Today the market cap, as of 1405 IST, stands at Rs 63.74 (Rs 6.71 cr overall m-cap lost)
As per the regulatory filing, the company proposes to meet its financial obligations through a combination of internal accruals and monetisation of assets and is in the process of evaluating the potential of every business to generate cash flows.
"The company cannot share any additional details at this stage due to confidentiality agreements," the filing said adding that the company will make an announcement and inform the stock exchanges once the process concludes.
"We have appointed merchant bankers for a possible sale of our Meininger business," the BSE filing added.
As of 1530 IST share price of Cox & Kings India were trading 5% lower at Rs 3.61 on BSE.