Thomas Cook (India) rallied 4.96% to Rs 160.70 after the company said its corporate restructuring process has been completed after receiving approvals from the NCLT Mumbai and Bengaluru.
Thomas Cook (India) announced after trading hours yesterday, 25 November 2019, that the composite scheme of arrangement and amalgamation amongst TC Forex Services and Travel Corporation (India) and TC Travel Services and SOTC Travel Management and Thomas Cook (India) and Quess Corp and their respective shareholders (the scheme) has become effective on Monday, 25 November 2019.The appointed date, from which the scheme will take effect is 1 April 2019. The board also took on record the amalgamation of residual Travel Corporation (India), TC Travel Services and TC Forex Services with the company with effect from Monday.
Post sanction of the Scheme by the National Company Law Tribunal (NCLT) Mumbai Bench on 10 October 2019 and by the NCLT Bengaluru Bench on 7 November 2019, the board has fixed 6 December 2019 as the record date, for the purpose of determining the shareholders of Thomas Cook (India) who shall be entitled to receive the equity shares of Quess Corp as per the share entitlement ratio mentioned in the scheme.
Accordingly, Quess Corp will issue and allot 1889 fully paid-up equity shares of Rs 10 each of Quess Corp for every 10,000 fully paid-up equity shares of Re 1 each, held as on 6 December 2019 by a member in Thomas Cook India.
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 & resources, ensuring focused management & eliminating cross holdings at Thomas Cook India.
Further, Thomas Cook India's long term rating was reaffirmed at 'CRISIL AA-/Stable' while short term credit stood reaffirmed at 'CRISIL A1+' worth Rs 739 crore combined. Corporate credit rating was reaffirmed at 'CCR AA-/Stable' and Rs 50 crore short term debt was maintained at 'CRISIL A1+.' The announcement was made after trading hours yesterday, 25 November 2019.
Shares of Thomas Cook (India) soared 10.52% in three trading sessions to its current market price of Rs 160.70 from its recent closing low of Rs 145.40 on Thursday, 21 November 2019.
Meanwhile, the S&P BSE Sensex was up 79 points or 0.19% to 40,967.88.
The stock was trading in the range of Rs 156.90 to Rs 169.15 so far during the day.
On the technical front, the stock's RSI (relative strength index) stood at 71.305. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading above its 50-day moving average (DMA) placed at Rs 137.93, but it was still below its 200 DMA placed at Rs 193.33 respectively.
Thomas Cook (India) reported a consolidated net profit of Rs 4.26 crore in Q2 September 2019 compared with a net loss of Rs 8.45 crore in Q2 September 2018. Net sales rose 6.3% to Rs 1,700 crore in Q2 September 2019 from Rs 1,599.88 crore in Q2 September 2018.
Thomas Cook (India) provides travel and travel related financial services.
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