Leading travel services provider Easy Trip Planners has announced Tuesday, November 22, 2022, as the record date for a stock split and the issue of bonus shares. Its shares were trading at ₹ 407.70 apiece at 11:35 AM on Monday.
Rationale behind the split and bonus
Easy Trip Planners mentioned in an exchange filing that over the years, the company and its subsidiaries have grown significantly, in terms of business and performance and this is reflected in the company’s share price.
An increase in the company’s share price would make it increasingly difficult for small potential shareholders to partake in the company’s future. Keeping with the spirit of inclusion and in order to reward the shareholders, its board of directors on October 11 announced these corporate actions. However, the record date was not announced at that time.
Bonus Issue
The board of directors of Ease My Trip have approved the issue of 3 bonus equity shares for every 1 fully paid-up equity share, or a 3:1 bonus issue. These shares will be issued out of the free reserves of the company, available as at March 31, 2022. The company requires 130.47 crores for the issue, but it has ₹ 196.31 crores in its free reserves as of March 31.
It has proposed to issue 1,30,37,40,000 at a face value of ₹1 (post-considering the split of shares into 1:1 subject to shareholders’ approval) or 65,18,70,000 at a face value of 2 (Pre-Split). The company informed the exchanges that these bonus shares would be credited/ dispatched within 2 months from the date of approval by the Board, i.e., by December 08, 2022.
Stock Split
In addition to a bonus issue, the company has announced the subdivision of the existing equity shares of a face value of ₹ 2 each into two shares of a face value of ₹ 1 each. This split will be completed on or before December 08, 2022, subject to necessary approvals.
Ease My Trip started its operations in 2008 as a B2B2C (business to business to customer) distribution channel. The company provides end-to-end travel solutions, including airline tickets, hotel and holiday packages, rail tickets, bus tickets, and taxis. In addition, it provides value-added services such as travel insurance, visa processing and tickets for activities and attractions.
Written by Simran Bafna
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