Shares of Easy Trip Planners surged nearly 14 percent in early trade on November 29 after the stock turned ex-bonus. The surge comes after the company revised its record date for bonus shares to November 29, in an exchange filing.
At 10 AM, shares of Easy Trip were trading 12.7 percent higher at Rs 18.4. The stock has declined by 54 percent year-to-date, underperforming the Nifty 50, which has gained 11 percent during the same period.
The company had announced the issue of bonus shares in a 1:1 ratio, which was approved by its board of directors on October 14. Investors who held Easy Trip shares before the ex-bonus date will be entitled to receive one additional share for every share they hold. This move is expected to enhance the liquidity of the stock and attract investor interest in the short term.
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As per the October 14 exchange filing, Easy Trip proposed to issue approximately 1.8 crore bonus shares at a face value of Rs 1 each. These shares will be issued out of the securities premium account, which was received in cash, along with general reserve and retained earnings as of March 31, 2024.
Regarding share capital, the company's capital pre-bonus stood at Rs 1.8 crore, consisting of 1.8 crore equity shares of Rs 1 each. Post-bonus, the share capital will increase to Rs 3.5 crore, consisting of 3.5 crore equity shares of Rs 1 each.
The bonus issue was derived from the company's free reserves and share premium. As of March 31, 2024, the balance available for capitalisation stood at Rs 397.4 crore in the free reserve and share premium account.
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The bonus shares are expected to be credited to shareholders' demat accounts on or before December 12, 2024.
Easy Trip offers a range of travel-related products and services under the brand 'Ease My Trip.' Its services include airline tickets, hotel bookings, holiday packages, rail and bus tickets, taxis, and additional services such as travel insurance, visa processing, and tickets for activities and attractions.
Previously, the company issued bonus shares in a 1:1 ratio on February 28, 2022, and in a 3:1 ratio on November 21, 2022.
Easy Trip reported a 45.2 percent year-on-year (YoY) decline in net profit for the quarter ended September, totaling Rs 25.8 crore, compared to Rs 47 crore in the same period last year. Revenue from operations rose by 2 percent, reaching Rs 144.6 crore, up from Rs 141.6 crore in the previous year.
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