Easy Trip Planners shares rally for second day, surge over 40% in 2 sessions

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Shares of Easy Trip Planners Ltd rallied for the second straight day with the stock jumping more than 17% to 67 apiece on the BSE in Tuesday’s deals, logging more than 42% gain in just the two trading sessions. The stock started trading ex-split and ex-bonus issue on Monday.

The company in October announced the bonus issue of three shares for every one share held i.e., 3:1 ratio and also sub division of equity shares of stock split in the ratio of 1:2. The company said that the bonus shares will be issued out of free reserves created out of profits of the company available as at March 31, 2022.

“This is to inform that the board at its meeting held has inter-alia, considered and approved the following items subject to shareholder’s approval: Sub-division/Split of each existing equity share of face value of 2/- into 2 equity shares of face value of Re 1/- fully paid- up and the issue of three bonus equity shares for every one fully paid-up equity share,” the company had announced in an exchange filing on October 10.

A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. A company engages in stock split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock. Meanwhile, bonus shares are fully paid additional shares issued by a company to its existing shareholders.

Explaining the rationale, Easy Trip Planners said that “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.” The estimated date by which such bonus shares would be credited/dispatched would be within 2 months from the date of board approval i.e. by December 8, 2022.

EaseMyTrip provides travel agents access to its website to book domestic travel airline tickets in order to cater to the offline travel market in India.

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