Integrated travel and travel related financial services player Thomas Cook India today said its board approved a fund raising plan of Rs 600 crore by divesting 5.42 per cent stake in its subsidiary Quess Corp.
The company said the stake sale will be carried out through an offer-for-sale route. It has fixed a floor price of Rs 800 per share.
The company said the move is to meet Sebi regulations that require promoters to bring down their stake to 75 per cent. Post-dilution, the combined promoter shareholding in Quess Corp (of Thomas Cook India and Ajit Isaac, CMD & CEO, Quess Corp) would be 75.38 per cent.
Fairfax Financial Holdings, through Thomas Cook India Group, is committed to maintaining a controlling stake in Quess Corp, the company said in a statement.
The initiative is also aimed at retiring Thomas Cook long term debt, thus bringing down its financial costs and improving profitability and liquidity at both a standalone and group level.
"Our aim is to retire our long term debt and improve profitability; simultaneously increase our cash reserves, enabling us to effectively leverage opportune investments as and when they arise," Thomas Cook India Group chairman and managing director Madhavan Menon said.
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