Thomas Cook (India) Ltd has received Board approval to divest a 5.42% stake in its subsidiary Quess Corp Ltd., to bring its shareholding to 51.56%, thereby proposing to raise funds of over Rs 600 cr. through an Offer for Sale (OFS) process as prescribed by SEBI. The floor price of Rs 800 per share for this price discovery process is the same as that of the August 2017 IPP of Quess Corp.
This is in keeping with SEBI regulations that require promoters to bring down their stake to 75% and post dilution, the promoter shareholding in Quess Corp (that of Thomas Cook India and Ajit Isaac, CMD & CEO,Quess Corp.) would be 75.38%.
Fairfax Financial Holdings Ltd., through the Thomas Cook India Group, is committed to maintaining a controlling stake in Quess Corp Ltd.
Madhavan Menon, Chairman & Managing Director, Thomas Cook India Group, said, “Our proposed dilution of a portion of our stake in Quess Corp is hence intended to comply with SEBI regulations. 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.”