Thomas Cook (India) jumps after board OKs stake sale in Quess Corp

Thomas Cook (India) rose 4.39% to Rs 240 at 9:31 IST on BSE after the company said its board approved selling a 5.42% stake in unit Quess Corp for Rs 600 crore.

The announcement was made after market hours yesterday, 22 November 2017.

Meanwhile, the S&P BSE Sensex was up 8.11 points, or 0.02% to 33,569.66.

On the BSE, 48,000 shares were traded in the counter so far, compared with average daily volumes of 25,953 shares in the past one quarter. The stock had hit a high of Rs 244.25 and a low of Rs 233.50 so far during the day. The stock hit a record high of Rs 257.55 on 3 October 2017. The stock hit a 52-week low of Rs 178 on 26 December 2016.

The stock had underperformed the market over the past 30 days till 22 November 2017, falling 4.88% compared with 2.93% rise in the Sensex. The scrip had outperformed the market in past one quarter, rising 6.48% as against Sensex's 6.22% rise. The scrip had underperformed the market in past one year, rising 22.88% as against Sensex's 28.83% rise.

The mid-cap company has equity capital of Rs 36.69 crore. Face value per share is Re 1.

Thomas Cook (India) said its board approved to divest a 5.42% stake in its subsidiary, Quess Corp, to bring its shareholding to 51.56%, thereby proposing to raise funds of over Rs 600 crore through an offer for sale (OFS) in two trading sessions viz. Thursday, 23 November 2017 for non-retail investors and on Friday, 24 November 2017 for retail investors and for non-retail investors who choose to carry forward their bids. The floor price for the OFS is Rs 800 per share.

Post dilution, the promoter shareholding in Quess Corp would be 75.38%. The initiative is in requirement of Securities and Exchange Board of India (Sebi)'s regulations to bring down promoter stake to 75%. It is also aimed at retiring Thomas Cook India's long term debt, thus bringing down the company's financial costs and improving profitability and liquidity at both standalone and group level.

On a consolidated basis, net profit of Thomas Cook (India) rose 267.76% to Rs 73.70 crore on 27.89% rise in net sales to Rs 2675.64 crore in Q2 September 2017 over Q2 September 2016.

Thomas Cook (India) is the leading integrated travel and travel related financial services company in the country offering a broad spectrum of services that include foreign exchange, corporate travel, MICE, leisure travel, insurance, visa & passport services and e-business.

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