EaseMyTrip Shares Tumble 8% After Promoter Offloads Stake In Block Deal Worth Rs 670 Crore; Check

The shares of online travel aggregator EasyMyTrip, owned by Easy Trip Planners, faced a significant drop as they plummeted nearly 8% to hit an intraday low of ₹37.93 per share on the BSE. This sharp decline followed the offloading of a 2.7% stake in the company by one of its promoters, Nishant Pitti.

The recent stake sale by Nishant Pitti, one of the founders of EasyMyTrip, took the market by surprise. Although initial reports suggested that Pitti might sell up to an 8.5% stake, he eventually offloaded 2.7%. The official parties involved in this transaction remain undisclosed.

A total of 17.6 crore shares, equivalent to 9.9% of Easy Trip Planners' equity, changed hands in this massive block deal on Wednesday, September 25, amounting to Rs 672.3 crore. These shares were traded at Rs 38 per share.

As per the latest data available on the exchange website for June 2024, Nishant Pitti held 28.13% of EasyMyTrip's equity. The promoter and promoter group collectively hold a substantial 64.3% stake in the company, while the remaining 35.7% is owned by public shareholders.

The impact of the offloading was felt immediately, with the shares of Easy Trip Planners taking a nosedive. As of 10:30 am on the National Stock Exchange (NSE), the stock was trading at Rs 37.90, down nearly 8%. The downward trend has been consistent, with the stock declining by 9% over the past year and losing 6.5% on a year-to-date basis. Over the last six months, the stock has dropped by 13%, and it has fallen by 10.5% in the previous three months.

Amidst the turmoil in its share price, EasyMyTrip has made some strides in expanding its offerings. On Monday, the company announced a strategic partnership with the public sector giant, Bank of Baroda, to launch a co-branded travel debit card aimed at frequent travelers. This innovative product is the first co-branded travel debit card to be launched by a public sector bank.

The company's statement read, "Bank of Baroda, one of India's leading public sector banks, in collaboration with EaseMyTrip.com, one of India's largest online travel tech platforms, today announced the launch of the Bank of Baroda EaseMyTrip Co-branded Travel Debit Card, designed to cater to frequent travellers and entertainment & lifestyle enthusiasts. This is the first co-branded travel debit card to be launched by a public sector bank."

This partnership is expected to offer several benefits to users, including special travel discounts, exclusive offers, and more, thereby enhancing the value proposition for EasyMyTrip's customers.

EasyMyTrip has been actively exploring new avenues to fuel its growth, venturing into the burgeoning medical tourism sector. The company's board recently approved the acquisition of a 30% stake in Rollins International for Rs 60 crore and a 49% stake in Pflege Home Healthcare Center for Rs 30 crore.

In another significant move, EasyMyTrip has also announced its plans to enter the electric vehicle (EV) manufacturing sector. Earlier this month, the company's board approved the incorporation of a wholly-owned subsidiary to manufacture electric buses, a decision that is currently subject to necessary approvals from the Ministry of Corporate Affairs.

Despite these positive developments, EasyMyTrip's shares have continued to face downward pressure, reflecting the cautious sentiment among investors. However, analysts suggest that the company's recent strategic moves, including the partnership with Bank of Baroda, entry into medical tourism, and plans to manufacture electric buses, could bode well for its future.