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Swiss travel group Kuoni's Indian unit mulls IPO

Kuoni Travel India Ltd, a fully-owned subsidiary of Swiss travel group Kuoni Holding AG, said on Wednesday it plans to make an initial public offer and list its shares on the Bombay Stock Exchange when conditions improve.

"Kuoni wants to float an IPO whenever the market stabilises. We had planned to do it this year, but the stock market till now has shown too much volatility," Arjun Sharma, chief operating officer of Sita Inbound, a division of Kuoni Travel India, told reporters on the sidelines of a news conference.

Kuoni India, which is capitalised at Rs 100 million, plans to offer a 25 per cent stake through the IPO, said Sharma.

The company earned a profit of Rs 250 million on sales of Rs 5 billion in the past year to March 31, and has no debt, he added.

FURTHER TAKEOVERS

The Swiss parent plans to acquire a few more travel firms in India, Sharma also said.

"We are looking at companies which cater to niche markets such as adventure tourism. Due diligence has already begun on one company we plan to takeover and we expect to announce it soon," he said.

Kuoni India bought Sita World Travel (India), a major Indian travel and tour operator, for Rs 1.4 billion last year.

It acquired Sita Tours and SOTC Tours in 1996.

Kuoni Holding AG posted a record net profit of 115.1 million Swiss francs for the past calendar year, up 32 per cent from the preceding year. Sales rose 17 per cent to 4.1 billion Swiss francs.

Its travel and tourism business is spread across Europe, North America and Asia.

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