Travel services firm Thomas Cook (India) Ltd (TCIL) has given in-principle approval to demerge its resorts and resort management business into Sterling Holiday Resorts Ltd (SHRL), along with a comprehensive capital restructuring plan. According to reports from CNBC TV18, the proposal is subject to approvals from the NCLT and other regulatory authorities. The demerger aims to separate the resorts business into Sterling Holiday Resorts, with Thomas Cook (India) shareholders receiving 0.81 shares of Sterling Holiday Resorts for every share held in Thomas Cook (India). The Board of Thomas Cook (India) Limited gave the approval based on a recommendation by the audit committee and the independent committee.
The resorts business under the Nature Trails brand has demonstrated strong financial performance, generating revenue of ₹70 crore in the nine months of FY 2026. As per The Hindu BusinessLine, this business will be transferred to SHRL under the scheme. The demerger is expected to streamline the capital structure and result in improved earnings per share for Thomas Cook (India) shareholders. The restructuring is aimed at separating business segments, streamlining the capital structure and enabling focused growth strategies across verticals.
As part of the restructuring, Thomas Cook (India) will consolidate four shares of face value ₹1 each into one share of ₹4 and subsequently reduce the face value from ₹4 to ₹3 per share. The company will also merge three dormant and non-operating subsidiaries to reduce administrative costs. Post the demerger, Thomas Cook (India) will continue to hold its existing stake in SHRL, while the promoter and public shareholding pattern of both entities will remain similar. Sterling Holiday Resorts shares are proposed to be listed on the BSE and NSE.
According to The Hindu BusinessLine, the demerger will enable sharper strategic and operational focus across each business vertical and pursue sector-specific growth strategies. Managing Director & CEO Mahesh Iyer stated that the demerger and restructuring unlock tremendous value and potential for TCIL shareholders by streamlining the existing capital structure and resulting in improved Earnings Per Share. The restructuring also paves the way for a future listing of SHRL, enabling it to chart its own course in the rapidly expanding hospitality space in India. TCIL owns and operates 6 resorts directly under the Nature Trails brand that will be transferred to SHRL as part of the demerger.
