Thomas Cook India shares plunge 5% as two-day OFS kicks off

Shares of Thomas Cook India Ltd plunged 5 per cent in Thursday's trade after the two-day offer for sale (OFS) by a promoter entity Fairbridge Capital Mauritius kicked off. Fairbridge Capital intends to sell 6.8 per cent stake in the Mumbai-based travel agency, represented by 3,20,00,000 Thomas Cook India shares. In an event of oversubscription, Thomas Cook India intends to buy another 80,00,000 shares or 1.7 per cent stake.  In total, the promoter group entity suggested intentions to offload 8.5 per cent stake in the offer.

The OFS by the promoter entity for 8.5 per cent stake is being offered at floor price of Rs 125. The floor price was at steep 21 per cent discount to Wednesday's closing price of Rs 158.25 for Thomas Cook India. Following the development, the scrip was locked at Rs 150.35 on BSE, its 5 per cent lower circuit limit.

The OFS kicked off for non-retail investors on Thursday. Retail investors can bid in the OFS on Friday. Non-retail investors can choose to carry forward their Thursday's bids on Friday. The OFS takes place on a separate window of stock exchanges between 915 am and 330 pm. Only retail investors will be allowed to place their bids and revise bids on Friday.

While placing their bids, the Non-Retail Investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of Retail Category (defined below)

"Those investors other than retail investors (non-retail investors) who have placed their bids on T day and have chosen to carry forward their unallocated bids to T+1 day, shall be allowed to revise their bids on T+1 day as per the SEBI OFS Circular," the company informed stock exchanges.

Thomas Cook India said the offer would continue to take place during trading hours on a separate window of Stock Exchanges on T+1 day i.e., December 1, 2023, commencing at 9:15 a.m. and shall close on the same date at 3:30 p.m. (Indian Standard Time).

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