Share price of Thomas Cook jumped 20 per cent on Thursday as the company announced plans to hold a meeting of the Board of Directors who will consider and approve the proposal for buyback of equity shares of the company.
Thomas Cook India share price jumped to hit the 20 per cent upper circuit on Thursday on the share buyback plan. Thomas Cook India shares were locked at Rs 49.50 on the National Stock Exchange as the company announced a meeting of the Board of Directors to consider and approve proposal for buyback of equity shares of the company. The travel company has seen its shares drop 36 per cent since the start of this year, hitting a 52-week low on February 17.
In a filing with the market regulator, Thomas Cook said, “Pursuant to Regulation 29 of the Securities and Exchange Board of India this is to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, 26th February 2020 to consider and approve proposal for buyback of equity shares of the Company.”
Thomas Cook India posted a profit of Rs 6.67 crore in the third quarter of this fiscal. The company had posted a loss of Rs 11 crore in the same period last year. The travel company which offers a range of services including foreign exchange services reported a significant drop in its taxes in the third quarter.
The share price of Thomas Cook India has taken a significant beating on Dalal street since September 2019, when a company with the same name in the United Kingdom announced that it will shut shop. Thomas Cook India was once owned by the British Travel giant Thomas Cook before being purchased by Canada-based Fairfax Financial Holdings. The share price has tanked more than 69 per cent since then.
Domestic benchmark indices were trading in the green today. S&P BSE Sensex was up by 53.31 points or 0.13 per cent at 41,376 points. Nifty-50 gained 18 points to trade at 12,143 points.