Mumbai (TAN): Travel company Cox & Kings Financial Service Ltd has decided to surrender its non-banking financial company (NBFC) licence. The decision was taken on September 13 at the board meeting of the company, TOI reported.
After the announcement has been made, the company’s stock dropped 6.25% to INR 0.75 (USD 0.0105) on Monday and Cox &Kings, the parent company’s stock climbed 5% and ended at INR 4.20 on the National Stock Exchange (NSE).
Cox & Kings Financial reportedly said in its NSE filling, “… we would like to inform you that, considering the ongoing challenges and slowdown in the NBFC business environment, the Board of Directors of the Company at its meeting held on September 13, 2019 at Mumbai, inter alia, has considered and approved the surrender of NBFC License.”
According to ongoing market rumours, Cox &Kings’ stock had hit a 52-week low on Friday at INR 3.10, a substantial downfall from a high of INR 223 last year. The company has been facing financial challenges and informed the exchanges earlier this month about a possible sale of its Meininger hotels business, reports said.
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The company was facing liquidity crunch and struggling to make vendor payments and to clear GST and tax dues, sources said. It also failed to declare its financial results for the quarter ended July 31. However, it recovered a part of its losses on Monday, after the news about the NBFC surrender spread.
