Easy Trip Planners Board Approves Stock Split: Easy Trip Planners Shares of online travel company Easy Trip Planners surged 6 per cent to Rs 428 on Monday after the company announced that its board has approved a stock split in the ratio of 1:2. The travel agency has also given its nod to the bonus issue of three shares for every one share held.
“This is to inform that the board at its meeting held today i.e., 10th October, 2022, has inter-alia, considered and approved the following items subject to shareholder’s approval: Sub-division/Split of each existing equity share of face value of Rs 2/- into 2 equity shares of face value of Rs 1/- fully paid- up and the issue of three bonus equity shares for every one fully paid-up equity share,” the company announced in an exchange filing today.
It added that bonus shares will be issued out of free reserves created out of profits of the company available as at March 31, 2022 and the estimated date by which such bonus shares would be credited/dispatched would be within 2 months from the date of board approval i.e. by December 8, 2022.
Why is Easy My Trip Going for a Stock Split?
A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. 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, bonus shares are fully paid additional shares issued by a company to its existing shareholders.
Explaining the rationale, it said that “the company and its subsidiaries have grown significantly, in terms of business and performance, over the years. This is reflected in the share price of the company. As and when the stock price rises further, it will be 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. the Board of Directors at its meeting held today, approved and recommended the said corporate actions.”
Further, Easy Trip Planner’s board has also announced a hike in Authorised Share Capital from Rs 75,00,00,000 to Rs 200,00,00,000 and an alteration in Capital Clause of Memorandum of Association.
Meanwhile, the travel agency, launched in 2008, debuted on the bourses last year on March 19, 2021. Easy Trip Planners operates the popular ticketing platform EaseMyTrip.com. The company is enrolled in the business of booking services related to travel and tourism.
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