Thomas Cook slipped despite the company saying that it is a separate entity from the now-bankrupt Thomas Cook Plc of the UK.
Thomas Cook India slipped more than 3 percent intraday on September 30, the sixth straight sessions that the shares have fallen, despite its statement that was an entirely separate entity from the now-collapsed Thomas Cook Plc of the UK.
In a BSE filing on September 23, the company said Canada-based Fairfax Financial Holdings had acquired the entire 77 percent stake of the UK’s Thomas Cook in the Indian travel company in 2012.
The stock has been hammered 14 percent in the last three sessions, as many believe that Thomas Cook (India) is the sister company of the UK travel agency.
Crisil has kept the rating of Thomas Cook (India) unchanged, saying it has no linkage with the UK’s bankrupt Thomas Cook.
"Crisil's credit bulletin dated September 26, communicated to Thomas Cook (India) Ltd, reflects that the ratings of Thomas Cook (India) Ltd remain unaffected as the bankruptcy of Thomas Cook Plc in UK has no linkage with Thomas Cook (India) Ltd," the ratings agency said in a statement.
“The last seven years have been fruitful as we continue to grow and build our legacy as an independent entity,” said Madhavan Menon, Chairman and Managing Director, Thomas Cook (India) Ltd.
He further said, “It is important that we clarify for the record that Thomas Cook (India) Limited is financially strong, profitable and maintains a positive outlook in the travel and tourism sector and continues to witness strong growth.”
The Thomas Cook India Group’s cash and bank deposits balances stand at Rs 1,389 crore (Rs 13,890 million) as of June 30.At 1354 hours, Thomas Cook (India) was quoting at Rs 133.95, down Rs 4.40, or 3.18 percent. It has touched an intraday high of Rs 140 and an intraday low of Rs 128.