Thomas Cook (India) Ltd. plans to raise more than ₹600 crore by divesting 5.42% stake in its subsidiary, Quess Corp Ltd. to comply with SEBI norms as well as to mobilise funds to retire long-term debt and build a corpus for future investment opportunities.
The board has approved the proposal.
Controlling stake
“We are committed to holding a controlling stake in our subsidiary, Quess Corp,” said Madhavan Menon, CMD, Thomas Cook India Group.
“Our proposed dilution of a portion of our stake in Quess Corp is hence intended to comply with SEBI regulations. Our aim is to retire our long-term debt and improve profitability; simultaneously increase our cash reserves enabling us to effectively leverage opportune investments as and when they arise,” he added.
Post dilution of the stake, Thomas Cook (India) will still hold 51.56% in Quess Corp and the promoters’ holding, which includes that of Thomas Cook India and Ajit Isaac, CMD & CEO, Quess Corp, would come down to 75.38%.
Offer for sale
The funds would be raised through an offer for sale (OFS) and the floor price had been fixed at ₹800 a share for price discovery process.
The initiative was 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 levels, the company said in a filing with stock exchanges.
