Shares of Easy Trip Planners, which operates EaseMyTrip - the second largest online travel agency in India in terms of gross revenue, hit the upper circuit limit of 20% on Monday after the travel company turned ex-date for a 3:1 bonus issue, and a 1:1 stock split. The board of directors of the company has fixed November 22 as the record date to finalise eligible shareholders for the issuance of bonus shares and subdivision of equity shares. A meeting of the company’s board is scheduled on November 23 to consider and approve the above proposals.
Boosted by the development, the share price of EaseMyTrip opened 13.3% higher at ₹54 against the previous closing price of ₹47.65 on the BSE. Extending opening gains, the stock hit an upper circuit of 20% to ₹57.15, in an otherwise weak broader market. In comparison, the BSE benchmark Sensex ended 519 points, or 0.84%, lower at 61,114 levels.
The counter currently trades 4% lower than its 52-week high of ₹59.56 touched on May 24, 2022, while it surged 92.5% against its 52-week low of ₹29.69 hit on November 23, 2021. The stock witnessed strong volume trade as 69.44 lakh shares changed hands over the counter as compared to the two-week average volume of 1.49 lakh scrips. The market capitalisation stood at ₹9,934.50 crore.
Last month, the board of EaseMyTrip had approved the sub-division of equity shares of the face value of ₹2 into 2 equity shares of the face value of ₹1. The board also gave a nod to the issue of 3 bonus equity shares for every 1 share held in the company. As per the company, the sub-division of equity shares will allow small potential shareholders to partake in the firm's future.
"The company and its subsidiaries have grown significantly, in terms of business and performance, over the years. This is reflected in the share price of the company. As and when the stock price rises further, it will be increasingly difficult for small potential shareholders to partake in the company's future. Keeping with the spirit of inclusion and in order to reward the shareholders the board of directors, the company as approved and recommended the said corporate actions," EaseMyTrip said in a regulatory filing.
For the July-September quarter of 2022 (Q2 FY23), EaseMyTrip reported 12.28% growth in its net profit at ₹30.63 crore as compared to ₹27.28 crore in the corresponding quarter previous year. The total income jumped 80.58% to ₹108.04 crore, from ₹59.83 crore in the same period last year. The zero-debt company clocked its highest-ever Gross Booking Revenue (GBR) of around ₹2,000 crore as of September 30, 2022.
