Shares of Easy Trip Planners Ltd ended Tuesday's trading session with gains of 6.53 per cent at Rs 408.25 apiece on BSE, after the new-age company announced consideration of a bonus issue and/or stock split in its board meet on 10 October, 2022.
The stock of the travel agency company rose as much 8 per cent in early trade on exchanges before paring some gains. Prices of its shares ended above Rs 400 apiece after 7 trading sessions.
“Please be informed that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, October 10, 2022, at 10:00 A.M through video conferencing for considering the proposal for increase in Authorised Share Capital, issue of bonus shares and/or Sub-division/Split of Share," Easy Trip announced in an exchange filing on Tuesday.
A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. Stock split decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company. A company engages in stock split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock.
Meanwhile, a company usually issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors. bonus shares are fully paid additional shares issued by a company to its existing shareholders.
EaseMyTrip provides travel agents access to its website to book domestic travel airline tickets in order to cater to the offline travel market in India. Its businesses are organized primarily in following segments like airline tickets, hotels and holiday packages and other travel services like rail tickets, bus tickets, taxi rentals, travel insurance, visa processing.
The stock is up nearly 54% in 2022 (year-to-date or YTD) so far. EasyMyTrip shares have given multi-bagger return of more than 294% since its listing in March 2021. Easy Trip Planners IPO was open between 8-10 March, 2021 and the shares made a stock market debut on 19 March, 2021.