Nishant Pitti to Sell 8.5% Stake in EasyMyTrip: What the ₹580 Crore Deal Means for Investors
shares of Easy Trip Planners, the parent company of EasyMyTrip, faced a significant decline in the stock market. The company’s stock dropped by over 7% during trading hours, hitting a low of ₹37.96 on the Bombay Stock Exchange (BSE) and closing at approximately ₹38.48 on the National Stock Exchange (NSE). This sharp decline is attributed to reports that promoter Nishant Pitti is looking to sell a substantial stake in the company through a block deal.
Main Points
Details of the Stake Sale
Nishant Pitti, CEO of EasyMyTrip, is expected to sell around 15 crore shares, which constitutes about 8.5% of the total share capital of Easy Trip Planners. The floor price for this block deal has been set at ₹38 per share, amounting to an estimated transaction value of ₹580 crore. This move has raised concerns among investors, leading to increased selling pressure in the market.In the early minutes of trading on September 25, the stock experienced a turnover of ₹704.75 crore on the NSE and ₹62 crore on the BSE. The trading volume was significantly higher than the average for the past two weeks, indicating heightened activity surrounding this major stake sale.
The reaction from the market has been notably negative. Over the past six months, Easy Trip Planners’ shares have fallen by approximately 13.6%. This recent downturn follows a broader trend where shares have been declining since earlier this year, with a year-to-date loss now exceeding 6%. The company’s stock performance has been lackluster compared to the Nifty 50 index, which has surged by about 31% during the same period.
The stock’s decline is also reflected in its technical indicators. Analysts have pointed out that Easy Trip Planners appears oversold, with support levels identified at ₹30.25 and resistance at ₹38.6. The company’s price-to-earnings (P/E) ratio stands at 57.11, while its price-to-book (P/B) value is at 11.40.
Recent Developments and Partnerships
Amidst these challenges, EasyMyTrip has made strides in expanding its service offerings. Recently, it announced a partnership with Bank of Baroda to launch a co-branded travel debit card aimed at frequent travelers and lifestyle enthusiasts. This initiative marks a significant milestone as it is the first co-branded travel debit card introduced by a public sector bank in India.
The card is designed to enhance customer convenience and provide additional benefits for users who frequently engage in travel and entertainment activities. This strategic move could help bolster customer loyalty and potentially improve revenue streams for EasyMyTrip in the long run.
Company Background and Future Outlook
Easy Trip Planners was founded by three brothers—Nishant, Rikant, and Prashant Pitti—and operates as a domestic online travel agency (OTA). The company offers services including airline ticketing, hotel bookings, and holiday packages through various channels such as B2C (business-to-consumer), B2E (business-to-employee), and B2B2C (business-to-business-to-consumer).
Despite facing current market pressures, analysts suggest that if EasyMyTrip can navigate through this period effectively and capitalize on its new partnerships while maintaining operational efficiency, it may recover from its recent setbacks.
