Shares of EaseMyTrip jumped nearly 20% to hit their upper circuit on the BSE at INR 57.15 on Monday
This is the second time in 2022 that the OTA’s shares are trading ex-bonus
The online travel aggregator approved the issuance of 3:1 bonus shares and a 1:1 stock split in October this year
Shares of EaseMyTrip jumped as much as 20% to hit their upper circuit on the BSE at INR 57.15 on Monday (November 21) after they started trading ex-bonus and ex-split.
The online travel aggregator (OTA) approved the issuance of 3:1 bonus shares and a 1:1 stock split in October this year with an intent to let small potential shareholders take part in the company’s growth trajectory. EaseMyTrip’s board has fixed November 22 as the record date to finalise the shareholders who would be eligible for the issue of bonus shares and stock sub-division.
A stock split increases a company’s number of outstanding shares in different specified ratios, which, in turn, increases the liquidity in the stock, hence making the shares more affordable. Meanwhile, issuance of bonus shares essentially increases the number of shares held by the shareholders in a particular ratio, free of cost for the shareholders.
Last month, EaseMyTrip approved a split of shares of face value of INR 2 into two equity shares of face value of INR 1. “Keeping with the spirit of inclusion and in order to reward the shareholders, the board of directors at its meeting held today approved and recommended the said corporate actions,” it had said.
This is the second time in 2022 that the OTA’s shares are trading ex-bonus. Earlier, in February, EaseMyTrip shares started trading ex-bonus after the issuance of 1:1 bonus shares.
Adjusted to the stock split and bonus issue, EaseMyTrip shares have gained 70% so far this year.
EaseMyTrip is one of the very few Indian new-age tech stocks that also trades above its IPO listing price.
Earlier this month, the startup reported a 4% increase in its consolidated net profit to INR 28.2 Cr in Q2 FY23 from INR 27.1 Cr in the year-ago quarter.
Speaking to Inc42, EaseMyTrip cofounder Prashant Pitti said that EaseMyTrip is eyeing at least three acquisitions by the end of the current fiscal year.
