EaseMyTrip jumps 6% amid India-Maldives row, incorporating subsidiary

Easy Trip Planners announced incorporation of a subsidiary in the name of “EasyTrip Insurance Broker Private Ltd” on January 5

Shares of Easy Trip Planners, which operates under the brand EaseMyTrip,  jumped more than six percent on January 8, after it incorporated a subsidiary company in the name of EaseMyTrip Insurance Broker Private Limited with promoter Nishant Pitti as a director, even as the Delhi-based travel portal suspended all Maldives flight booking on its website amid the ongoing diplomatic tussle between India and Maldives.

This subsidiary will add a new revenue vertical for the company and enable it to scale up its business for insurance broker and related services, the company said.

Pitti held 28.67 percent stake in Easy Trip Planners, which operates under the brand EaseMyTrip as of September 30 while the promoter group owned 65.54 percent stake in the company in the period mentioned. EaseMyTrip Insurance Broker Private Ltd's registered office is in the National Capital Delhi and the main object inter-alia is to carry out the insurance broker business.

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On the deal consideration, Easy Trip Planners said 60 percent subscription to the share capital is in cash. The authorized and subscribed capital of the target entity stood at Rs 7.50 lakh, the company said.

The stock closed 4.7 percent higher at Rs 43.35 on the National Stock Exchange (NSE). The stock has fallen over 18 percent in the last one year, underperforming benchmark Nifty 50 which has risen around 20 percent during this period.

The rise in share price on January 8 comes even as Pitti announced the suspension of all Maldives flights by EaseMyTrip in the aftermath of the derogatory remarks made by now-suspended Maldivian ministers on India and Prime Minister Narendra Modi over his recent visit to Lakshadweep.

Patti on Monday, in a post on X, erstwhile Twitter, said EaseMyTrip has suspended all Maldives flight bookings in solidarity with the nation.

“Water & beaches of Lakshadweep are as good as Maldives/Seychelles We at @EaseMyTrip will come up with crazy special offers to promote this pristine destination that our PM @narendramodi has recently visited!” Pitti wrote wrote.

Earlier this month, the online travel service provider announced that is planning to raise up to Rs 1,000 crore through a preferential issue.

Also Read | Easy Trip Planners gets board nod for raising funds up to Rs 1,000 crore

The board of directors of the company has given in-principle approval for the fundraising proposal, and it pertains to "identifying the optimum combination of equity shares and/or warrants convertible into equivalent number of equity shares of the company to be issued on preferential basis for raising funds up to Rs 1,000 crore."

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