THOMASCOOKNSEThomas Cook (India) Limited· Travel And TransportMediumNeutral
Announced Fri, 20 Mar · 19:22 IST

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

Demerger Ratio AnnouncedStrategic 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
After-mkt
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-3.3-3.9-4.9-6.0-8.6-7.9-10.3-13.8-8.1-7.2+7.0-4.3-10.5+7.5
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AI summary

Thomas Cook (India) Limited's Board has approved a Composite Scheme of Arrangement to demerge its Resorts and Resort Management business (operated under the 'Nature Trails' brand with 6 resorts) into its wholly-owned subsidiary Sterling Holiday Resorts Limited (SHRL). The demerged undertaking had a turnover of about INR 70 crore for CY2025, only ~0.4% of TCIL's standalone turnover. Under the scheme, TCIL shareholders will receive 81 shares of SHRL for every 100 shares held in TCIL, and SHRL will be separately listed on BSE and NSE. Additionally, TCIL will consolidate 4 equity shares of Re. 1 each into 1 share of Rs. 4 each, and then reduce the face value from Rs. 4 to Rs. 3 per share to improve earnings per share. Three dormant, non-operating wholly-owned subsidiaries (TC Visa Services, Jardin Travel Solutions, and Borderless Travel Services) will also be merged into TCIL to cut compliance costs. The scheme is subject to shareholder, creditor, NCLT, SEBI, and stock exchange approvals, with completion expected in 15–18 months.

Likely market impact

Shareholders will receive shares in a separately listed Sterling Holiday Resorts, enabling focused value play in the hospitality business alongside their TCIL holding. The share consolidation and capital reduction should lift EPS for TCIL shareholders, but since the demerged business is a very small (~0.4%) part of TCIL's turnover, the immediate operational impact on TCIL is limited—the bigger story is unlocking SHRL as an independent listed entity.