Easy Trip Planners Shares Plunge 10% Amid Reports Of Stake Sale, Promoter Nishant Pitti Likely To Sell

The shares of Easy Trip Planners (EaseMyTrip) witnessed a sharp decline in early trading on Tuesday, dropping 10% following reports of a major promoter stake sale. The market reaction overshadowed the company's announcement of its growing franchise network, with a new store opening in Raipur, Chhattisgarh.

The stock plummeted after a report by CNBC-TV18 on Monday revealed that co-founder Nishant Pitti planned to sell his remaining 14.21% stake in the company. The stake, valued at Rs 780 crore, was set to be sold via a block deal scheduled for Tuesday, December 31.

The floor price for the sale was reported to be Rs 15.6 per share, a significant 9% discount to the stock's closing price of Rs 17.05 on Monday. This discount raised concerns among investors, triggering a sell-off when the market opened.

Easy Trip Planners shares opened at Rs 15.76 on the Bombay Stock Exchange (BSE) on Tuesday, a drop of more than 7% compared to the previous close. The stock further declined to an intraday low of Rs 15.36, marking a 10% loss. By 10:45 am on the National Stock Exchange (NSE), the shares were trading with a cut of over 7%, at Rs 15.82 per share.

The steep discount at which the shares were sold reflected a bearish sentiment, causing panic among retail investors. This sell-off adds to a challenging year for the company's stock, which has delivered negative returns exceeding 22% over the past 12 months.

Analysts are watching the impact of Pitti's exit on the company's operations and governance. As a co-founder, his stake and involvement were seen as significant to EaseMyTrip's strategic direction.

Franchise Expansion

Amid the turmoil, Easy Trip Planners announced the launch of its 24th franchise store in Raipur, Chhattisgarh. This expansion is part of the company's ambitious plan to establish 100 franchise outlets by FY25, focusing on tier-2 and tier-3 cities.

The Raipur store will offer a wide range of travel services, including domestic and international flight bookings, premium hotel accommodations, customized holiday packages, and bus and railway ticketing. Additionally, the store will provide luxury cruise bookings, visa assistance, and tailored corporate travel solutions. In its release, EaseMyTrip emphasized the importance of offline stores in catering to the growing travel needs of smaller cities. While the new franchise store reflects EaseMyTrip's focus on expanding its reach, the broader market sentiment remains cautious.