Travel Booking Startup EaseMyTrip Plans Issuing Bonus Shares Amidst Share Price Nosedives

Weeks after Easemytrip founders and CEO Nishant Pitti sold a major portion of his shares, the company’s board is considering a new bonus share offering.

In an exchange filing on October 9, EaseMyTrip stated that its board of directors will meet on Monday (October 14) to discuss and authorize the issuance of bonus shares.

For the uninitiated, bonus shares are issued by a corporation for free in proportion to the number of shares already held by shareholders.

Related: EaseMyTrip Clocks 31% Rise in Profits, PAT Rs 33.9 crore in Q1FY25

The development comes as the startup’s shares have been falling for the past few weeks. During intraday trading on October 7, the stock fell to a new 52-week low of INR 31.10, tracking the larger market slump.

The downward spiral in EaseMyTrip’s shares began on September 25 when Pitti sold 16.91 crore shares for INR 37.22 each, 6.73 crore shares for INR 37.42 each, and 1 crore shares for INR 38.28 each. Pitti’s share in the startup was decreased to approximately 14%, down from more than 28% at the end of the June quarter. Since then, the startup’s stock has plunged more than 16%.

EaseMyTrip previously awarded bonus shares twice. In October 2022, the startup’s board approved the issuance of bonus shares in a 3:1 ratio, as well as a stock split. Prior to that, the corporation issued bonus equity shares in the ratio of 1:1 in February 2022.

On the business front, EaseMyTrip has made several major announcements in recent months. On September 17, the business announced the acquisition of a 30% stake in Rollins International Private Limited for INR 60 crore ($7.15 crore) and a 49% stake in Pflege Home Healthcare Center LLC for INR 30 crore ($3.5 crore) to enter the medical tourism market.

Last month, the company established a wholly owned subsidiary, Easy Green Mobility, to expand into electric bus manufacturing. It intends to invest INR 200 crore in R&D, product development, and the establishment of a manufacturing factory over the next 2-3 years.

EaseMyTrip shares closed today’s trading session 3.52% higher at INR 34.13 on the BSE.