SUMMARY
EaseMyTrip said it has entered into a definitive agreement to acquire a 75% stake in Gujarat-based Nutana Aviation Capital
Nutana Aviation leases charter aircraft, enabling operators to run efficiently, and also provides charter booking services to its clients in India and abroad
Shares of EaseMyTrip ended today’s session on the BSE at INR 66, up almost 5% from Wednesday’s close
Online travel aggregator (OTA) EaseMyTrip on Thursday (December 1) said that it would acquire a 75% stake in Gujarat-based aviation asset financing and leasing company Nutana Aviation Capital IFSC Private Limited.
In a regulatory filing, the OTA said that it has entered into a definitive agreement, subject to closing conditions, to acquire the stake in Nutana Aviation. “In a growing charter market across the globe, Nutana Aviation will be carrying business for renting and booking of charter aircrafts,” the traveltech startup said.
Nutana Aviation leases charter aircraft, enabling operators to run efficiently, and also provides charter booking services to its clients in India and abroad.
The acquisition will mark EaseMyTrip’s foray into the growing air charter services market in India and abroad.
The development comes weeks after EaseMyTrip’s cofounder Prashant Pitti told Inc42 in an interview that the startup was eyeing at least three new acquisitions in the current financial year.
By acquiring Nutana, EaseMyTrip expects to fast-track its growth by adding a new business segment. The acquisition is in line with the traveltech major’s focus on diversification.
“As an acquiring party, EaseMyTrip always tries to buy stakes in companies that have the capability to establish an exemplary operations model in the future. Nutana Aviation brings a very novel idea to realization with their services,” said Nishant Pitti, CEO of EaseMyTrip.
“With India’s ever-growing demand for aircraft charters in the foreseeable future, we see Nutana shaping a reliable, robust, and profitable channel,” he added.
EaseMyTrip said in the statement that it would focus on growing inorganically and attaining profits via the acquisition as it also ensures its expansion to the international markets.
“Under this transaction, EaseMyTrip will hold a majority stake in Nutana Aviation. Post investment by EaseMyTrip, Nutana Aviation will continue to run and operate as an independent entity,” it said.
EaseMyTrip’s consolidated net profit rose 4% year-on-year (YoY) to INR 28.2 Cr in Q2 FY23. However, it declined over 14% quarter-on-quarter due to higher advertising and promotional expenses during the September quarter.
The business grew at a steady pace as the company reported operating revenue of INR 108.4 Cr in Q2, up over 92% YoY as the air segment continued to bring in the majority of revenue.
Following the announcement, shares of EaseMyTrip jumped on the bourses today. The stock ended today’s session on the BSE at INR 66, up almost 5% from Wednesday’s close.
Despite a persistent negative sentiment for the new-age tech stocks, EaseMyTrip’s performance has largely been impressive in 2022. Two weeks back, its shares hit their upper circuit on the BSE after they started trading ex-bonus and ex-split.
