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Thomas Cook India Ltd has approved an in-principle proposal to demerge its resorts and resort management business into Sterling Holiday Resorts Ltd (SHRL), enabling a potential independent listing of the subsidiary. The move includes transferring the company's Nature Trails resort portfolio into SHRL and restructuring its capital base. Shareholders of Thomas Cook India will receive 0.81 shares of SHRL for every one share held. The restructuring also involves a share consolidation and is subject to regulatory approvals, including from the National Company Law Tribunal. The company stated that the demerger is aimed at streamlining operations and improving earnings per share while allowing SHRL to operate as a separate listed hospitality entity.
Thomas Cook India Ltd (TCIL) has approved an in-principle proposal to demerge its resorts and resort management business into its wholly owned subsidiary, Sterling Holiday Resorts Ltd (SHRL), with the objective of enabling a future independent listing of the hospitality business, the company said in a statement issued in the past week. The decision was taken by the board following recommendations from its audit committee and an independent committee. Advertisement
As part of the proposed restructuring, TCIL will transfer its resorts business, including six properties operated under the Nature Trails brand, to SHRL. The move is intended to consolidate all resort and hospitality operations under a single entity, allowing focused management and operational clarity within the segment.
Under the terms of the demerger, shareholders of TCIL will receive shares in SHRL as consideration, based on an entitlement ratio of 0.81 shares of SHRL for every one share held in TCIL. Post the demerger, TCIL will continue to retain its existing shareholding in SHRL, while the promoter and public shareholding patterns of both entities are expected to remain similar.
The company has also proposed a share consolidation as part of the restructuring exercise, whereby four equity shares of face value INR 1 each will be consolidated into one equity share of face value INR 4 each. The combined restructuring plan, including the demerger and share consolidation, is subject to approvals from the National Company Law Tribunal (NCLT) and other regulatory authorities.
TCIL stated that the restructuring is aimed at streamlining its capital structure and improving earnings per share for its shareholders. By separating the resorts business into a distinct entity, the company expects to create operational efficiencies and enhance financial clarity across its business segments.
Mahesh Iyer, Managing Director and Chief Executive Officer of Thomas Cook India Ltd, indicated that the demerger would allow the hospitality business to pursue an independent growth trajectory. He added that the restructuring is intended to unlock value for shareholders while enabling SHRL to operate as a focused entity within the hospitality sector.
Following the completion of the demerger, shares of SHRL are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The listing would provide direct market access to investors seeking exposure to the hospitality segment, which has been witnessing increased activity amid rising domestic travel demand.
The proposed restructuring reflects a broader trend among companies to separate distinct business verticals to enhance operational focus and improve capital allocation, particularly in sectors such as travel and hospitality where growth trajectories may differ from core business operations.
Source - PTI
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