Thomas Cook India share price rose over 5% intra day today after credit ratings agency Crisil said ratings of the firm remain unaffected as the bankruptcy of Thomas Cook PLC in United Kingdom has no linkage with the Indian travel company. Thomas Cook India share price rose 5.45% to Rs 148 compared to the previous close of Rs 140.35 on BSE.
However, the mid cap stock saw some profit booking in last 10 minutes of trade and closed 1.43% lower at Rs 138.35. It touched an intra day low of Rs 135 falling 3.81% on BSE.
Thomas Cook India share has lost 13% in last five days. In the longer term too, Thomas Cook India share has seen significant losses.
While the stock fell 40.15% during last one year, it lost 41.68% since the beginning of this year.
Thomas Cook India in a release said, "CRISIL's credit bulletin dated September 26, 2019, communicated to Thomas Cook (India) Ltd and uploaded on its portal, reflects that the ratings of Thomas Cook (India) Ltd. remain unaffected as the bankruptcy of Thomas Cook PLC in United Kingdom has no linkage with Thomas Cook (India) Ltd.
The bulletin further elaborates that Thomas Cook (India) Ltd. (TCIL) is a completely separate entity from Thomas Cook UK post acquisition of 77% stake by Canada based Fairfax Financial Holdings in 2012.
While TCIL is a brand licensee of 'Thomas Cook' brand in India, there exists no shareholding or business linkage between the two companies. Hence, CRISIL believes that the liquidation of the UK-based entity should not have a material impact on TCIL's credit profile."
British travel group Thomas Cook on September 23 declared bankruptcy after failing to reach a last-ditch rescue deal, triggering the UK's biggest repatriation since World War II to bring back stranded passengers.Since then, Thomas Cook India share price has fallen 13% till date.
The 178-year-old operator had been desperately seeking 200 million pounds ( $250 million, 227 million euros) from private investors to save it from collapse.
Edited by Aseem Thapliyal