Thomas Cook (India) dips 12% despite clarification on suspicious transaction

It denied report which said that the MCA was probing Thomas Cook (India) in relation to a 'suspicious' money transaction with a Delhi-based forex trader.

Shares of Thomas Cook India slipped up to 12 per cent to Rs 135 in intra-day deals on the BSE on Tuesday, despite clarifying that the company has not received intimation from the Ministry of Corporate Affairs (MCA) over any 'suspicious’ transaction. The stock was trading close to its 52-week low of Rs 121, touched on August 23, 2019.

Clarifying on the news report, which said that the Ministry of Corporate Affairs (MCA) was probing Thomas Cook (India) in relation to a ‘suspicious’ money transaction with a Delhi-based forex trader, the travel support services company called the report "factually incorrect". 

“We categorically refute the contents of the same in reference to Thomas Cook India and state for the record that both the headline and contents of the article are factually incorrect and malicious in intent,” the company said in a BSE filing on Monday after market hours.

“Despite having issued a clear statement to the journalist Tarun Sharma via an email dated September 23, 2019, that we have received no intimation from the Ministry of Corporate Affairs and have no existing relationship with Aarush Forex Private Limited, a baseless and highly damaging article has been posted that clearly maligns Thomas Cook India,” it added.  CLICK HERE TO READ FULL REPORT

In a separate regulatory filing, the company said that since there was no connection whatsoever between Thomas Cook in the UK and Thomas Cook India, "the collapse of Thomas Cook in the UK has no impact whatsoever in terms of ownership, business, people, technology or processes to us at Thomas Cook India".

The management categorically reiterated that it is business as usual for Thomas Cook India which is a completely independent entity, acquired by Canada-based Fairfax Financial Holdings in August 2012 from Thomas Cook in the UK.

At 10:13 am, shares of Thomas Cook India were down 7 per cent at Rs 143, as compared to a 0.28 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 7,78,173 shares changing hands on the NSE and BSE so far.