Thomas Cook India is set to raise R200 Cr through private placement of NCDs.

The BSE filing stated the raising of debt for a tenor of three to five years and may be secured by charge on movable and/or immovable property (ies) of the company.

However, the utilization of the funds was not revealed by the company.

Recently the Indian unit of British travel operator Thomas Cook was sold by its parent to Canadian property and casualty insurer – Fairfax Financial Holdings for $150 Mn. The move was taken to cut down the debt of the company (which stood at $1.58 Bn).

Thomas Cook plunged 92% last year after a squeeze on consumer spending in the UK and political unrest in North Africa reduced holiday bookings.

Thomas Cook (India), operating in India since past 131 years, is the largest integrated travel and travel related financial services company in the country offering broad range of services that include foreign exchange, corporate travel, leisure travel, and insurance.

It currently operates in over 78 cities across over 206 locations (including 25 airport counters). The company has overseas operations in Sri Lanka which is a branch of TCIL and Mauritius which is a subsidiary of Thomas Cook (India).

However, Thomas Cook is one of the three national players in the country ( other two being Cox & Kings and Kuoni India) and the tourism outlook by the World Travel and Tourism Council (WTTC) estimates the Indian travel and tourism industry’s direct contribution to GDP at $36 Bn and its total contribution at $121 Bn.

Rival online player MakeMyTrip is on course to enhance presence through inorganic growth. It bought two companies this month (Thai group ITC and HotelTravel.com).

Cox & Kings was also planning to raise $140 Mn from institutional investors in May this year.

Sri Lanka based Expolanka Holdings PLC had acquired controlling stake in destination management firm Akquasun Holidays India Pvt. Ltd. for R5 Cr.

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