Thomas Cook India shares extend fall, down 5% on Day 2 of OFS; co exercises oversubscription option

Thomas Cook India Ltd shares extended the recent fall to Friday's trade, as Day 2 of the offer for sale (OFS) by a promoter entity opened for retail subscription. On Thursday, the quota reserved for non-retail investors was subscribed 2.97 times on BSE. Clearing Price of Rs 137.45 was fixed for non-retail bid portion in the Thomas Cook OFS, the stock exchange suggested.

Retail portion was subscribed 14.92 per cent on Friday so far. A promoter entity Fairbridge Capital Mauritius earlier suggested that it will sell 6.8 per cent stake in Thomas Cook, as represented by 3,20,00,000 shares. In an event of oversubscription, the promoter entity of Mumbai-based travel agency said it would buy another 80,00,000 shares or 1.7 per cent stake. In total, the promoter wishes to offload 8.5 per cent stake in the offer.

“We wish to intimate the stock exchanges of our intention to exercise the Oversubscription Option. Accordingly, the total Offer size will be up to 40,000,000 equity shares of the company. Consequently, 4,000,000 equity shares of the company, would be reserved for allocation to retail investors, subject to receipt of valid bids, as part of the Offer on December 01, 2023,” Thomas Cook said post market hours of Thursday.

Thomas Cook shares fell as the offer is being offered at floor price of Rs 125, which was at a steep 21 per cent discount to Wednesday's closing price of Rs 158.25 for Thomas Cook India.

On Friday, the stock hit 5 per cent lower circuit limit at Rs 142.85 on BSE. It later recovered a bit and was trading at 144.10, down 4.16 per cent.

The OFS kicked off for non-retail investors on Thursday. Retail investors can bid in the OFS on Friday. Non-retail investors can choose to carry forward their Thursday's bids on Friday. The OFS takes place on a separate window of stock exchanges between 915 am and 330 pm. Only retail investors will be allowed to place their bids and revise bids on Friday.

While placing their bids, the Non-Retail Investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of Retail Category (defined below)

"Those investors other than retail investors (non-retail investors) who have placed their bids on T day and have chosen to carry forward their unallocated bids to T+1 day, shall be allowed to revise their bids on T+1 day as per the SEBI OFS Circular," the company informed stock exchanges.

Thomas Cook India said the offer would continue to take place during trading hours on a separate window of stock exchanges on T+1 day i.e., December 1, 2023, commencing at 9:15 am and shall close on the same date at 3:30 pm (Indian Standard Time).

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