Thomas Cook (India) Limited (TCIL) has announced the demerger of its Resorts and Resort Management business into Sterling Holiday Resorts Limited (SHRL). This strategic move, approved by TCIL's board, aims to unlock shareholder value and streamline the company's capital structure. The demerger, subject to regulatory approvals, will allow SHRL to pursue independent growth strategies and potentially list on the stock exchange.

The decision, recommended by TCIL's audit and independent committees, is designed to attract differentiated investor groups and improve Earnings Per Share for TCIL shareholders. TCIL, which operates six resorts under the Nature Trails brand across India, will transfer this business to SHRL. Shareholders of TCIL will receive 0.81 shares of SHRL for every TCIL share they hold, maintaining a similar shareholding pattern post-demerger.

The restructuring plan includes consolidating TCIL shares and merging three dormant subsidiaries to cut administrative costs. SHRL shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Mahesh Iyer, Managing Director and CEO of TCIL, expressed enthusiasm about the demerger, stating, "This demerger and restructuring unlocks tremendous value and potential for TCIL shareholders by streamlining the existing capital structure and resulting in improved Earnings Per Share."

The demerger is expected to enhance strategic focus and operational agility, enabling SHRL to expand in India's growing hospitality sector

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