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    Thomas Cook (India) continues to fall despite clarifying it has no links with the UK travel firm

    Thomas Cook (India) continues to fall despite clarifying it has no links with the UK travel firm

    Thomas Cook (India) continues to fall despite clarifying it has no links with the UK travel firm
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    By CNBC-TV18  IST (Updated)

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    Thomas Cook (India) (TCIL) fell over 7 percent on Monday, extending losses for the sixth straight session.

    Thomas Cook (India) (TCIL) fell over 7 percent on Monday, extending losses for the sixth straight session. The stock has been falling ever since Thomas Cook (UK) collapsed as many believe that Thomas Cook (India) is the sister company of the UK travel agency.
    Thomas Cook (UK) collapsed owing to debt after creditors denied additional funds to the company. This resulted in the downfall of Thomas Cook (India) and despite the clarification issued by the Indian travel firm that both the entities are different, the stock has seen no relief.
    In a BSE filing dated September 23, the company stated that Thomas Cook India is an entirely separate entity from Thomas Cook PLC in the UK as Canada-based Fairfax Financial Holdings had acquired the entire 77 percent stake of the UK travel agency in the Indian travel firm in 2012.
    Despite the clarification, the stock has been under pressure, falling over 18 percent since September 23. Today alone, the stock has fallen as much as 7.4 percent to Rs 128 per share on the BSE. At 11:57 AM, the stock was trading 3.7 percent lower at Rs 133.20 as compared to a 0.66 percent or 255 points fall in the BSE Sensex to 38,567.
    CRISIL’s credit bulletin dated September 26, 2019, had also reflected that the ratings of Thomas Cook (India) remain unaffected as the bankruptcy of Thomas Cook PLC in the United Kingdom has no linkage with Thomas Cook (India).
    The bulletin further elaborated that 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.
    Madhavan Menon, chairman and managing director, Thomas Cook (India) said, “CRISIL’s credit bulletin is both a reiteration of the strong leadership, as also the sound financial position of the independent Thomas Cook India Group since its acquisition by Fairfax Financial Holdings in 2012.”
     
    Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions
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