Thomas Cook rights issue to be delayed

Will pursue it after Sebi approval on internal restructuring

MUMBAI: Thomas Cook (India) Ltd has decided to delay its rights issue until further notice from the Securities and Exchange Board of India (Sebi). The company board had approved the 1:3 rights issue, aggregating up to Rs 225 crore, in March this year.

“Owing to internal reorganisation in the holding of the parent companies of the promoters, the proposed rights issue would be deferred till further notice,” said Madhavan Menon, managing director, Thomas Cook (India) Ltd.

According to him, the company was pretty gung-ho on the rights issue and will be able to pursue it once there is more clarity on the issue of participatory notes. The proceeds of the proposed rights issue were to be deployed to augment the capital base of the company for further growth.

With an eye on the e-commerce opportunity in the local travel space, the management intends to launch its internet property in the second half of 2008. “We will shortly launch the e-business portal that will augment all businesses of the company and provide support to its 174 existing counters across the country,” said Madhavan.

Additionally, as part of its emphasis on enhancing efficiencies, the management is continuing with its focus on rightsizing, i.e. integration of people and infrastructure rationalisation, to deliver margin enhancement.