Easy Trip Planners Block Deal: Promoter Stake Sale

Shares of Easy Trip Planners (EaseMyTrip) took a hit today, sliding to a 52-week low of Rs.34.72. This came after reports surfaced that promoter Nishant Pitti was likely selling up to 8.5% of his stake in the company through a block deal, valued at around Rs.622 crore. A total of 4.6 crore shares, representing 2.6% of the company, were sold at a floor price of Rs.38 per share, with the stock eventually dropping 14.7% to Rs.35.

Financials & Growth Plans 

Despite the stock dip, EaseMyTrip has been delivering a decent financial performance. In Q1FY25, the company reported a 31% jump in profit after tax(PAT) to Rs.33.93 crore, up from Rs.25.90 crore in the same quarter last year. Revenue also increased to Rs.156.22 crore from Rs.126.64 crore, with gross booking revenue hitting Rs.2,274.5 crore.

Beyond the financials, EaseMyTrip is now venturing into new territory. The company is investing Rs.200 crore to develop its electric bus manufacturing subsidiary, Easy Green Mobility, over the next 2-3 years. YoloBus, a subsidiary, will run this new electric bus initiative. The company plans to scale its fleet to 2,000 electric buses by 2028, a big leap from the current 80 buses.

Expanding Into Medical Tourism

EaseMyTrip is also diversifying into medical tourism with two strategic acquisitions. It’s acquiring a 30% stake in Rollins International, a Singapore-based wellness and health supplements company, through a Rs.60 crore share swap. Additionally, it’s purchasing a 49% stake in Dubai’s Pflege Home Healthcare for Rs.30 crore, using a combination of cash and shares.

Conclusion: While the block deal and resulting stock dip may seem concerning, EaseMyTrip’s long-term strategies like expanding into electric mobility and medical tourism could position it for growth. The company is diversifying its portfolio, and with good financials, it’s aiming for a broader market presence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.