The Share price of the small-cap stock hit its lower circuit of 5 percent of Rs 150.35 from its previous close of Rs 158.25 after the company announced the promoter’s proposed Offer for sale.
According to the filling of Thomas Cook India, the company promoter Fairbridge Capital (Mauritius) Limited proposed an offer for sale (OFS) of 6.8 percent of its stake in the company, or 3.2 crore equity shares, at a floor price of Rs 125 per share.
This represents a discount of 16 percent to the company’s opening price of Rs 150.35 on Thursday. The offer for non-retail investors will open on November 30, and retail investors can bid on December 1.
The company also has an over-subscription option, where it can sell an additional 0.8 crore shares or 1.7 percent of its equity share capital. If the shares are oversubscribed, the total offer would come up to 4 crores equity shares, or 8.5 percent of the company’s equity capital.
The offer is being made at a steep discount to the company’s current share price, which suggests that the promoter group is looking for a quick exit. The offer is also being made at a time when the travel industry is facing a number of challenges, including rising fuel costs and a weak economic outlook.
According to the company financial report, the net revenue increased by 51 percent year over year, from Rs 1,221 crore in Q2FY23 to Rs 1,843 crore in Q2FY24. Furthermore, the company turned a net loss of Rs 1 lakh in Q2FY23 into a net profit of Rs 52.4 crores in Q2FY24.
The company’s promoters hold a 72.34 percent stake in the company, with 0.57 percent owned by foreign institutional investors, 18.9 percent owned by the general public, and 8.1 percent owned by domestic institutional investors.
Thomas Cook India Ltd is a small-cap company with a market capitalization of 7,000. The share price of the company rose by 134 percent in the last six months and 107 percent in the year to date.
Thomas Cook offers a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Visa and passport services, and E-Business. The company set up its first office in India in 1881.
Written by Sriram KV
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