Shares of Thomas Cook (India) Ltd today rallied by about 16 per cent on the bourses, the company said that the pledging of shares by its promoters would not affect its business operations.
The stock settled 15.98 per cent higher at Rs 37.75 on the BSE. Earlier in the day, the stock had gained as much as 20 per cent, but pared some of the intra-day gains.
On the NSE also, the stock soared 15.49 per cent to close at Rs 37.65.
Some marketmen said that the rally in the share price could also have been supported by speculation about a possible sale of the company, but there was no official word on this.
While the UK-based promoters have pledged their entire holding of 77.11 per cent in the company to a consortium of banks led by Royal Bank of Scotland, Thomas Cook (India) said it has no financial dependence on its parent firm.
“Our business model is completely different from our parent ... We have no financial dependence on Thomas Cook UK and the parent has not issued any guarantee on our behalf,” the Thomas Cook India (TCI) Managing Director, Mr Madhavan Menon, has said.
He also said TCI’s balance sheet is healthy and the problems faced by the parent will not impact it.
The overall market trend was also bullish today and the BSE benchmark Sensex gained 117.11 points.