THOMASCOOKNSEThomas Cook (India) Limited· Travel And TransportMediumNeutral
Announced Fri, 20 Mar · 19:31 IST

Thomas Cook (India) Limited has informed the Exchange about Composite Scheme of Arrangement.

Demerger Ratio AnnouncedCore Business DivestedNclt Scheme FiledStrategic Transactions View source PDF

THOMASCOOK · price

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Price reaction · full curve 14 horizons · vs prior close
-8.6%1-day move
₹103.99
prior close
₹103.50
base price
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AI summary

Thomas Cook (India) Limited's board approved a composite scheme to demerge its Resorts and Resort Management business (6 resorts under the 'Nature Trails' brand) into its wholly-owned subsidiary Sterling Holiday Resorts Limited (SHRL). Under the share entitlement ratio, TCIL shareholders will receive 81 equity shares of SHRL (face value Rs 10) for every 100 shares held in TCIL, and SHRL will subsequently be listed on BSE and NSE. The Demerged Undertaking's turnover was Rs 70 crores in FY25, representing only about 0.4% of TCIL's standalone turnover of Rs 2,243.97 crores. Additional steps include consolidating every 4 TCIL shares of Rs 1 face value into 1 share of Rs 4 face value, then reducing the face value from Rs 4 to Rs 3 per share, and absorbing 3 dormant wholly-owned subsidiaries (TCVSL, JTSL, BTSL) into TCIL. The scheme is subject to shareholder, creditor, NCLT, SEBI and stock exchange approvals, with completion expected in 15-18 months.

Likely market impact

For TCIL shareholders, this restructuring unlocks value by carving out the resorts vertical for an independent SHRL listing, attracting hospitality-focused investors to that entity. The share consolidation combined with the Rs 4 to Rs 3 face value reduction should improve earnings per share and present a cleaner, more efficient capital structure for TCIL, though the demerged business is only a marginal contributor (~0.4%) to overall turnover.