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Thomas Cook India Shares Update: OFS Trends, Promoter’s Oversubscription Option, and Market Impact Unveiled
Extension of Recent Fall
Thomas Cook India Ltd shares continued their recent decline in Friday’s trade as the promoter entity opened Day 2 of the offer for sale (OFS) for retail subscription.
Non-Retail Quota Subscription
On Thursday, the non-retail investor quota was subscribed 2.97 times on BSE, with a Clearing Price of Rs 137.45 set for the non-retail bid portion in the Thomas Cook OFS.
Retail Subscription Update
As of Friday, the retail portion was subscribed to 14.92 percent. Fairbridge Capital Mauritius, the promoter entity, had initially planned to sell a 6.8 percent stake in Thomas Cook, represented by 3,20,00,000 shares.
Promoter’s Oversubscription Option
In the event of oversubscription, Fairbridge Capital Mauritius expressed its intent to sell an additional 80,00,000 shares, totaling a 8.5 percent stake in the offer.
Offer Expansion Announcement
Post market hours on Thursday, Thomas Cook announced the intention to exercise the Oversubscription Option, expanding the total offer size to 40,000,000 equity shares. A portion of 4,000,000 equity shares will be reserved for allocation to retail investors.
Impact on Thomas Cook Shares
Floor Price Concerns
The share price of Thomas Cook fell as the OFS was offered at a floor price of Rs 125, representing a steep 21 percent discount to Wednesday’s closing price of Rs 158.25 for Thomas Cook India.
Friday’s Stock Movement
On Friday, the stock hit a 5 percent lower circuit limit at Rs 142.85 on BSE but later recovered slightly, trading at Rs 144.10, reflecting a 4.16 percent decrease.
OFS Operational Details
The OFS commenced for non-retail investors on Thursday, and retail investors can bid on Friday. Non-retail investors have the option to carry forward their Thursday’s bids to Friday. The OFS operates between 9:15 am and 3:30 pm on a separate stock exchange window.
Revision Options for Non-Retail Investors
Non-retail investors who choose to carry forward their unallocated bids to the next day (T+1) can revise their bids according to the SEBI OFS Circular.
Continuation of Offer
Thomas Cook India confirmed that the offer will continue during trading hours on T+1 day, December 1, 2023, from 9:15 am to 3:30 pm (Indian Standard Time).