Thomas Cook India,one of the leading integrated travel services company, has received approval from its board of directors for buy-back of up to 26.08 million fully paid up shares at a price of Rs. 57.50 a share for a maximum aggregate amount of Rs. 1.50 billion.

''The buy-back price of Rs.57.50 a share is at a premium of 40% over the closing market price of the equity shares as on the date immediately preceding the date of the intimation of the board meeting,'' said the company

The buy-back record date has been fixed as March 7, 2020 and the transaction will be entirely funded by internal accruals.

Madhavan Menon, Chairman & Managing Director, Thomas Cook India said, ''The buy-back scheme is primarily intended to increase shareholder value as the income arising to the shareholder on account of buy-back of shares is exempt from tax. We have ensured that the interests of our small shareholders are protected via the reservation process and additionally, the flexibility in our buy-back scheme offers our shareholders the choice of cash via participation or a resultant increase in their percentage holdings with no additional investment. The buy-back will signal confidence to our shareholders and unlock the underlying value of the diversified Thomas Cook India Group.''

Shares of the company declined Rs 0.85, or 1.69%, to settle at Rs 49.35. The total volume of shares traded was 70,064 at the BSE.