Thomas Cook Ltd, Mumbai-based travel agency, on Wednesday, said that its promoter Fairbridge Capital (Mauritius) is looking to sell up to 8.5% stake in the company through an offer for sale.
According to the exchange filing by the company, the promoter proposes to sell up to 32,000,000 shares of the travel company with the floor price for the same at ₹125/share.
The base offer size for the proposed sale of Thomas Cook shares is set at a significant discount of 21% to the current market price. On the National Stock Exchange, Thomas Cook’s shares concluded Wednesday 4.5% lower at ₹158.40.
The initial offering includes up to 32,000,000 shares, constituting a 6.8% stake in the company. If there is oversubscription, Fairbridge Capital intends to make available an additional 8,000,000 shares in Thomas Cook, representing a 1.7% stake.
Fairbridge Capital possessed a 72.34% ownership stake in the travel services provider, as September ended.
The offer for sale will be available for institutional investors starting on Thursday and for retail investors on Friday. Institutional investors have the option to carry forward unallotted bids for allocation on Friday.
Around 10% share of the offered shares is reserved for allocation to retail investors, who can place bids for up to ₹200,000.
In June of the previous year, Fairbridge increased its stake in Thomas Cook to 72.34% from 70.58%, following the conversion of optionally convertible cumulative redeemable preference shares.
Thomas Cook’s shares emerged as top performers in 2023, delivering multibagger returns of over 122% year-to-date.
The company achieved record profit growth for the quarter ending in September, driven by robust performance across its business segments.
Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged 2.4 times year-on-year to ₹131 crore, and profit before tax soared to ₹76.6 crore from ₹4.9 crore a year ago.