Yes Bank on July 26 said it has has acquired 18.55 per cent stake in Cox & Kings by invocation of pledged shares. The bank has invoked pledge on 3.27 crore equity shares having nominal value of Rs 5 per share, constituting 18.55 per cent of the post-issue paid-up share capital, of Cox & Kings, Yes Bank said in a regulatory filing. Cox & Kings Limited has a consolidated turnover revenue of Rs 5,693.5 crore as on March 31.Besides, the bank invoked pledge on 34,080 equity shares having nominal value of Rs 10 per share, constituting 30 per cent of an unlisted company Ezeego One Travel & Tours Limited.
YES Bank has become the second-largest shareholder in tour operator Cox & Kings after it acquired a 18.55 per cent stake from the invocation of pledge. The private-sector lender has also picked up a 30 per cent stake in Cox & Kings sister concern ezeego1 following a loan default.
The 260-year-old travel firm is owned by the Kerkar family through domestic and overseas entities. The firm has been facing a liquidity crisis, resulting in loan defaults and rating downgrades in the past few months. This has led to promoters pledging additional stake to raise funds. Lenders have also invoked pledges following default. The promoter stake in the company fell 10 percentage points to 39.73 per cent between April and June, and has now been reduced to 21.18 per cent following YES Bank’s action. Over 69 per cent of the promoter stake was pledged as of June end.
YES Bank recently informed the stock exchange that it acquired 32 million shares in Cox & Kings, amounting to 18.55 per cent of the paid-up capital. It also took 34,080 shares in ezeego1, taking a 30 per cent stake in the firm. It said the pledge was invoked following a loan default by ezeego1, a B2B travel firm owned by the Cox & Kings promoters. Cox & Kings had a debt of Rs 3,238 crore at end of FY19, comprising of both short-term and long-term debt.The business of ezeego1 has come to a halt since late last month after the International Air Transport Association suspended the firm from selling tickets on credit and it laid off over 100 employees.
