Thomas Cook Shares Locked In Lower Circuit On Promoter Plans To Sell Stake At Discount

Shares of Thomas Cook India were locked in the lower circuit on Thursday as promoter Fairbridge Capital (Mauritius) Ltd. plans to sell part of its stake in the company.

The promoter will sell up to 3.2 crore shares, representing 6.8% stake, as per an exchange filing on Wednesday. It will sell an additional 1.7% stake, comprising 80 lakh shares, if the offer for sale is oversubscribed.

Fairbridge Capital has set the floor price for the offer at Rs 125 per share at a 21.08% discount to the stock's previous close of Rs 158.40 per share on the NSE. The OFS will close on Dec. 1.

The promoter held 72.34% stake in the Mumbai-based omnichannel travel company, as of September. Post the stake sale, its share will fall to 65.54%.

Shares of Thomas Cook were locked in the lower circuit of 4.99% at Rs 150.50 apiece, after it hit the high of Rs 167.90 apiece on Wednesday. This compares to a 0.15% decline in the NSE Nifty 50 at 11:31 a.m.

The stock has risen 111% on year. Total traded volume so far in the day stood at 0.4 times its 30-day average. The relative strength index was at 52.93.

The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 97.1%.