EaseMyTrip shares tumble nearly 10% as block deal triggers selloff
EaseMyTrip shares sink nearly ten per cent as co-founder divests stake in major block deal.
Shares of Easy Trip Planners, which operates the online travel platform EaseMyTrip, nosedived 9.9 per cent to Rs 15.36 apiece on Tuesday, December 31. The sharp decline was attributed to a significant block deal where one per cent of the company's equity changed hands.
This development coincides with earlier reports that Nishant Pitti, co-founder of EaseMyTrip, planned to divest his remaining 14 per cent stake in the company for Rs 780 crore. The stake sale was anticipated to take place at Rs 15.6 per share.
Co-founder’s earlier divestments
Nishant Pitti has been systematically reducing his stake in the company. In September, he sold 14 per cent of his holding through open market transactions, fetching Rs 920 crore. The shares were offloaded at prices ranging from Rs 37.22 to Rs 38.28 per share. Following this transaction, Pitti’s ownership of Easy Trip Planners decreased from 28.13 per cent to 14.22 per cent.
The combined promoter holding has also reduced significantly from 64.30 per cent to 50.39 per cent over the same period.
EaseMyTrip’s strategic initiatives
Despite the recent selling pressure, the company has remained active in enhancing its business offerings. In October, Easy Trip Planners announced a 1:1 bonus share issuance, which was approved by the board.
In November, the company introduced EMT Desk, a corporate travel management platform aimed at providing customized solutions for business clients. EMT Desk offers strategic planning and budget analysis to optimize corporate travel expenses.
Outlook and implications
The ongoing reduction in promoter stakes has raised concerns among investors, leading to heightened volatility in the stock. However, the company’s focus on expanding its service portfolio and catering to niche segments like corporate travel could help stabilize sentiment in the long run.
As trading volumes surged following the block deal, market participants will closely monitor how this development impacts the company’s shareholding structure and investor confidence.
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