EaseMyTrip Board To Consider Issuance of Bonus Shares Or Share Split; Stock Soars 7%

Listed traveltech startup EaseMyTrip on Tuesday (October 4) said that its board will meet next week to consider the issuance of bonus shares or a share split.

EaseMyTrip, in an exchange filing, said that a meeting of its board of directors is scheduled for October 10 to consider the proposal to increase authorised share capital, issue bonus shares and/or split shares.

Following the announcement, the startup’s shares rose over 7% on the BSE. The stock was trading 7.3% higher at INR 411 at 02:50 PM.

The announcement came a day after another listed startup Nykaa’s board approved the issuance of bonus shares in the ratio of 5:1. 

The move comes at a time when the global equity markets, including in India, are under pressure and facing high volatility due to negative investor sentiment amidst the ongoing Russia-Ukraine war and high inflation. Shares of EaseMyTrip fell 7% over the last week.

Despite being bootstrapped till IPO, EaseMyTrip is one of the few profitable startups in the segment. The traveltech startup reported a profit after tax of INR 33.7 Cr in Q1 FY23, more than double as compared to the corresponding quarter last year. 

The startup’s adjusted revenue increased 169% year-on-year (YoY) to reach INR 131.5 Cr in Q1 FY23. At the same time, its Gross Booking Revenue (GBR) increased by over 4X to INR 1,663.1 Cr.

Founded in 2008 by Nishant Pitti, Rikant Pitti and Prashant Pitti, EaseMyTrip is a traveltech startup that helps customers book air, rail and bus tickets. The startup also offers hotel booking and holiday packages along with other travel services. It competes with the likes of MakeMyTrip and ixigo. 

EaseMyTrip was in the news in June when it alleged that a smear campaign was underway against it on Twitter. The alleged smear campaign involved several Twitter accounts alleging being cheated by EaseMyTrip and accusing it of making fraudulent offers.

In response, the startup initiated legal action against the owners of the Twitter accounts that made the allegations.