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Thomas Cook extends gains to 3rd day, jumps 6% on plans to raise Rs 450 cr

The travel services firm said it plans to raise up to Rs 450 crore via the issue of Optionally Convertible Cumulative Redeemable Preference shares (OCCRPS) through private placement

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Thomas Cook (India) | Buzzing stocks | Markets

SI Reporter  |  New Delhi 

Photo: Bloomberg
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

Shares of 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 allowed the company to withdraw a share 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.

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First Published: Mon, February 22 2021. 09:51 IST
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