In a significant development, Nishant Pitti, the promoter and CEO of Easy Trip Planners Ltd., the parent company of EaseMyTrip, has sold a substantial portion of his stake in the company. On September 25, Pitti offloaded 24,65,49,833 shares, which represents approximately 13.9% of the company's total share capital, in a block deal worth Rs 920.06 crore.
The shares were sold through three different bulk transactions at prices ranging from Rs 37.22 to Rs 38.28 per share. This sale reduces Pitti's stake in the company from 28.13% to around 14% as of the latest transactions.
Market Reaction
The announcement of the stake sale initially led to a significant drop in the share price of Easy Trip Planners. On the day of the block deal, the stock plummeted by 7.46% to hit a low of Rs 37.96 on the BSE, and it fell by as much as 16% in the subsequent session, reaching an all-time low of Rs 32.78.
However, the stock rebounded strongly on September 26, surging by nearly 7% as investors regained confidence. The shares closed at Rs 36.49 on the BSE, marking a recovery from the previous day's losses.
Institutional Buyers Step In
The block deal attracted several institutional buyers. Core4 Marcom Pvt. acquired 5 crore shares at Rs 37.95 apiece, while Craft Emerging Market Fund PCC-Elite Capital Fund bought 1.05 crore shares at Rs 34.25 apiece. These transactions indicate continued interest from institutional investors in the company.
Recent Business Developments
Despite the volatility in the share price, Easy Trip Planners has been making strides in its business. The company recently announced a partnership with Bank of Baroda to launch the Bank of Baroda EaseMyTrip Co-branded Travel Debit Card, a first-of-its-kind initiative by a public sector bank. This card is designed to cater to frequent travelers and entertainment and lifestyle enthusiasts.
Additionally, Easy Trip Planners has entered into an exclusive partnership with PhonePe to launch its Hotels segment on the PhonePe platform. This collaboration aims to enhance user experience by providing seamless access to a wide array of domestic and international hotel options. The company plans to expand its offerings further by introducing Activities and Cabs on PhonePe, creating a comprehensive travel booking experience.
Financial Performance
In the June 2024 quarter, Easy Trip Planners reported a 31% year-on-year increase in consolidated profit after tax, amounting to Rs 33.93 crore, up from Rs 25.9 crore in the same period last year. The total income rose to Rs 156.22 crore, compared to Rs 126.64 crore a year earlier. However, total expenses also increased, reaching Rs 109.03 crore, up from Rs 91.56 crore year-on-year.
Market Outlook
The market capitalization of Easy Trip Planners stands at Rs 6,473.26 crore, and the company is part of the BSE 500 category. Despite the recent volatility, the company's strategic partnerships and financial performance suggest a positive outlook for investors.
In conclusion, while the stake sale by the promoter led to initial market jitters, the swift rebound in the EaseMyTrip share price reflects the underlying strength and potential of the company. As Easy Trip Planners continues to innovate and expand its services, investors are likely to remain keen on this travel tech player.
