10% Dividend, 2:1 Stock Split: Easy Trip Planners Likely To Consider Bonus Issue; Share Price In Focus

The shares of Easy Trip Planners attracted attention on October 10 after the company announced an upcoming board meeting scheduled for October 14, where the issuance of bonus shares will be a key agenda item.

The company's notification stated, "Pursuant to Regulation 29 and other applicable Regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, October 14, 2024, at 01:00 P.M. through video conferencing, inter alia, to consider and approve the issue of bonus shares."

Bonus shares, also known as scrip dividends, are additional shares distributed to existing shareholders without any extra cost. These shares are typically issued based on the number of shares already held by the investor, often in a specific ratio, such as 1:2. For instance, shareholders might receive one bonus share for every two shares they currently own. The issuance of bonus shares is usually drawn from the company's retained earnings or reserves, allowing for increased liquidity in the market without altering the ownership structure.

While the introduction of bonus shares does not inject new capital into the company, it increases the total number of shares outstanding. This can improve the affordability of the stock price and enhance trading activity, making it more appealing to both current and potential investors.

As of 3 pm, the National Stock Exchange (NSE) on October 10, Easy Trip shares were trading with a slight gain of nearly 1%, priced at Rs 34.37 per share. Following this increase, the stock is currently 36% below its record high of Rs 54, achieved in February 2024. Additionally, it is up 9% from its recent 52-week low of Rs 31.71, which was recorded just earlier this week.

Despite the recent uptick, the scrip has experienced a challenging year, losing over 19% in the past 12 months and more than 14% year-to-date (YTD). The stock's performance in October has been relatively flat, with a marginal rise of half a percent thus far, following two consecutive months of losses. The decline was particularly pronounced in September, where Easy Trip shares shed over 14%, coupled with a 4% drop in August.