Shares of Thomas Cook (India) extended their winning run to the third straight session on Monday as they rose by 6 per cent in intra-day trade to Rs 50.25 on the BSE following the firm’s fund-raising plans. In the three days, shares of the firm have added over 10 per cent.
The travel services firm on Saturday said it plans to raise up to Rs 450 crore via the issue of Optionally Convertible Cumulative Redeemable Preference shares (OCCRPS) through private placement.
The company’s board approved the issuance of up to 45,00,00,000 OCCRPS of the face value of 10 each to Fairbridge Capital (Mauritius) Ltd, the promoter of the company, through private placement on a preferential basis, Thomas Cook said in a regulatory filing.
Recently, securities market regulator Sebi allowed the company to withdraw a share buyback offer, agreeing with the company that the coronavirus pandemic’s financial impact had made the plan “impossible”.
Thomas Cook’s board in February 2020 agreed to carry out a Rs 150-crore share repurchased programme, but lockdowns and travel restrictions disturbed that plan. READ MORE
The company, earlier this month, reported a consolidated net loss of Rs 66.23 crore for the third quarter ended December 2020, due to the continued impact of Covid-19. It had posted a net profit of Rs 8.60 crore for the corresponding period previous fiscal.
“Despite the continued challenges posed by the pandemic, our teams have remained focussed on business recovery across each of our business segments with impressive performances by DEI, the Middle East based DMS companies and Sterling Holidays, supported by the continued focus on cost optimisation and cash conservation across the Group,” the company Chairman and MD Madhavan Menon said.
At 9.38 am, the stock was trading 2.21 per cent higher at Rs 48.50 on the BSE as against a 0.08 per cent decline in the S&P BSE Sensex.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.