The Board of Easy Trip Planners has approved the issue of bonus shares as well as a stock split. Both corporate actions will take place on or before December 8, 2022.
Easy Trip Planners (Ease my trip) is a travel company that got listed on the bourses only in March 2021. It provides travel agents access to its website to book domestic travel airline tickets in order to cater to the offline travel market in India. Since its listing, its share price has increased by 274.56 per cent, giving multibagger returns.
“We have grown significantly in terms of business and performance over the years. This is reflected in the share price of the company. Keeping with the spirit of inclusion and in order to reward the shareholders, the board at its meeting held today approved and recommended the said corporate actions,” the company said, explaining the rationale behind the stock split and bonus issue.
It added that its share price has gone up over the years and this has made it increasingly difficult for small potential shareholders to partake in the company’s future.
The company in a BSE filing reported that its Board has considered and approved the sub-division/split of each existing equity share of face value of ₹ 2/- (Rupees Two only) into 2 equity shares of face value of ₹ 1/- (Rupee One Only) fully paid-up.
Further, it has approved the Issue of 3 (three) bonus equity shares for every 1 (one) fully paid-up equity share. It added that the bonus will be issued out of free reserves created out of profits of the company available as of March 31, 2022.
In addition, the company will increase the authorized share capital from ₹ 75 crores to ₹ 200 crores and alter the Capital Clause of the Memorandum of Association.
The company’s shares were trading at ₹ 395.65 at 12:10 PM on Tuesday. The shares have an excellent return on equity of 53.16 per cent. They are trading at a price-to-equity ratio of 69.76, which is much higher than the industry PE of 58.79. This indicates that the stock could be overvalued.
Written by Simran Bafna
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Travel Company’s board approves bonus and stock split: Check the details here appeared first on Trade Brains.
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