Shares of Thomas Cook India rose by nearly 1.7 per cent on Monday after the travel services firm said it plans to raise Rs 450 crore via the issue of optionally convertible cumulative redeemable preference shares (OCCRPs) through private placement.
The company’s board of directors has approved the issuance of up to 45 crore OCCRPs of the face value of 10 each to promoter Fairbridge Capital Mauritius Ltd through private placement on a preferential basis, it said in a statement.
The size of the issue is up to Rs 450 crore subject to the approval of regulatory, statutory authorities and shareholders of the company, it added. The board also authorised a committee to decide on various matters related to the issuance of such OCCRPs.
In addition, as a result of the proposed issue, the board approved an increase in authorised preference share capital from Rs 250 crore to 500 crore and consequential changes to the capital clause of the company’s memorandum of association.
Thomas Cook India Group is one of the largest travel and financial service provider networks headquartered in the Asia Pacific region, spanning 29 countries and five continents with a team of over 9,700.
Earlier this month, it reported a consolidated net loss of Rs 66 crore for the third quarter ended December 2020 due to the continuing impact of Covid-19. It had posted a net profit of Rs 8.6 crore in the corresponding period previous fiscal.
The company’s stock was trading 1.69 per cent higher at Rs 48.15 per share on BSE.