Till 10:47 am, a combined 1.63 million shares changed hands and there were pending buy orders for 755,036 shares on the NSE and BSE.
“The board of directors of the Company is scheduled to meet on Wednesday, 26th February, 2020 to consider and approve proposal for buyback of equity shares of the Company,” Thomas Cook (India) said in an exchange filing.
The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.
In the past two months, the stock has underperformed the market by falling 41 per cent, as compared to 1 per cent decline in the S&P BSE Sensex till Wednesday.
In November 2019, travel services firm Thomas Cook India had completed its corporate restructuring process after it received approvals from the National Company Law Tribunal (NCLT) Mumbai and Bengaluru. The company demerged its human resource services business into Quess Corp on a going concern basis.
The management said, the restructuring process with the realignment of the travel businesses of TCIL & consolidation of the human resource services business into Quess Corp., is aimed at simplifying & clarifying structure & holdings, streamlining businesses and resources, ensuring focused management and eliminating cross holdings at Thomas Cook India.