Thomas Cook India is known as a one-stop solution for complete holiday packages and all travel-related services across India and globally which is operated through Thomas Cook. Thomas Cook India has an established office in Mumbai and according to recent reports, the company is planning to raise funds worth USD450 crore through preferential issue of shares.
According to a report by Business Insider, Thomas Cook India is in advanced to talk to raise up to INR 450 crore via preferential issue of OOCRPS which stands for Optionally Convertible Cumulative Redeemable Preference Shares to Mauritius-based Fairbridge Capital Limited to the promoter of Thomas Cook India.
This information has been verified by the regulatory filings submitted by the company wherein it is mentioned that the Board of Directors approved the issuance of 45 crore Optionally Convertible Cumulative Redeemable Preference Shares of face value at INR 10 per piece to Fairbridge Capital (Mauritius) Limited who is a promoter of the company, as mentioned in a report by Business Insider. Furthermore, these shares will be issued on a preferential basis through private placement which concludes at up to INR 450 crore.
It is also mentioned in several reports that the issuance of this huge amount is subject to approval from authorities and regulators. The issuance of these 45,00,00,000 optionally convertible cumulative redeemable preference shares is subject to approval from the statutory authorities which also includes the Reserve Bank of India (RBI) and the previously existing shareholders of the company which shall be decided in the upcoming EGM (Extraordinary General Meeting) held by the company.
According to the company profile on Crunchbase, it is mentioned that back in 2016, Thomas Cook India invested an undisclosed amount of money in Sita World Travel Lanka which is a Sri Lanka-based travel company.
However, for the only specific purpose of issuance of 45,00,00,000 optionally convertible cumulative redeemable preference shares, the Board of Directors has authorised a special committee that will decide on various matters related to the subject and issuance of such optionally convertible cumulative redeemable preference shares for Thomas Cook India to raise up to INR 450 crore.
Furthermore, according to the report by Business Insider and as per the data mentioned in the regulatory filings, it is confirmed that the Board of Directors at Thomas Cook India has approved the increase in authorised preference share capital from the previous limit of INR 250 crore to INR 500 crore which also includes the necessary changed to be done in the company’s Memorandum of Association.