EaseMyTrip Surges 15% After Chairman Says No More Stake Sale By Promoter

Shares of Easemytrip surged as much as 15% to INR 17.84 during the intraday trading on Monday (January 6), despite a slump in the broader market, after the company’s promoter, former CEO, and cofounder Nishant Pitti said there would be no more stake sale by any of the promoters. 

However, the stock gave up some of the gains to end today’s trading session 4.57% higher at INR 16.23 apiece.

In a post on X, Pitti, who is now the chairman, said, “Confirming again there is no promotor [sic] selling… Focused on global expansion and entering new verticals like corporate travel and luxury tourism. Leveraging AI, data analytics, and exploring blockchain for enhanced customer experiences.”

This was the second clarification by Pitti within a few days. Earlier, on Friday (January 3), he expressed his confidence about the company’s future. Pitti wrote in a post on X then, “… To honour your trust, I have thoughtfully limited my share sale and confirm there will be no further sales from my side.”

The former CEO was clarifying his stake sale in the company. Last Tuesday (December 31), Pitti offloaded 5 Cr shares of the company via a block deal for INR 78.3 Cr. Following this, his stake in the company declined to 12.80%.

Earlier, reports had said that he was looking to offload his entire 14.21% stake in the company. 

Following the stake sale, Pitti also stepped down from the role of CEO of EaseMyTrip. His brother and EaseMyTrip’s cofounder Rikant took over as the CEO.

It is pertinent to note that the company’s cofounder have been offloading their shares for a year or so. During the company’s Q2 FY25 earnings call as well, EaseMyTrip’s cofounders were questioned about selling almost 25% of their stake since March 2023. 

Just last month, the company secured board approval to raise INR 234.03 Cr from seven investors through a preferential issue of equity shares. 

Shares of EaseMyTrip have given a negative return of 25.14% over the past year.

On the financial front, EaseMyTrip reported a 42.8% decline in its consolidated profit after tax (PAT) to INR 26.8 Cr in Q2 FY25 from INR 46.9 Cr in the year-ago quarter. 

Revenue from operations rose 2.1% to INR 144.6 Cr in Q2 FY25 from INR 141.6 Cr in the September quarter last year. However, it declined 5.2% on a sequential basis from INR 152.6 Cr.