Shares of Easy Trip Planners which operates EaseMyTrip.com surged 8 per cent to Rs 414.95 on the BSE in Tuesday’s intra-day trade after the company announced bonus issue and stock split plan.
Easy Trip Planners in an exchange filing today said the board of directors of the company are scheduled to meet on Monday, October 10, 2022, for considering the proposal for issue of bonus shares and/or sub-division/split of shares.
The average trading volumes on the counter jumped over two-fold with a combined around 5 million equity shares changing hands on the NSE and BSE till 10:35 AM. Currently, Easy Trip Planners has a face value of Rs 2 per share.
With a view to have more participation from the investors in the scrip and increase liquidity of the shares of the company, the board recommends the sub-division of existing paid-up share capital of the company.
A stock split is generally undertaken to make the stock more affordable to small retail investors and increase liquidity. It refers to splitting the face value of shares, in which the number of shares of the company increases but the market capitalisation stays the same. Existing shares split, but the underlying value remains unchanged. As the number of shares increases, the price per share goes down.
Earlier, during FY 2021-22, Easy Trip Planners issued bonus shares in the ratio of 1:1 i.e. one bonus share for every one share held in the company.
Easy Trip Planners made a stock market debut on March 19, 2021. The company had raised 510 crore through initial public offering (IPO) by issuing shares at price of Rs 93.50 per share (adjusted to 1:1 bonus share). The stock had hit a record high of Rs 477 on May 24, 2022. It touched a record low of Rs 73.75 on April 19, 2021.
The company is engaged in the business of providing reservation and booking services related to travel and tourism through ease my trip-portal, ease my trip-app or in-house call-centre.
The management believes there is a huge amount of pent-up demand for travel and tourism, especially now that a majority of people have been vaccinated and people are waiting to go out on family holidays. Once the situation normalises and is under control, the management anticipates that there is huge opportunity lying ahead and the company is ready to grab market share and grow exponentially.
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))