Easy Trip Planners Shares Surge 16% on Strong Volume; Company Expands with New Insurance Subsidiary
Easy Trip Planners Ltd, India’s second-largest online travel tech platform, experienced a robust 16 percent surge in its shares during Thursday’s trading session, accompanied by substantial turnover on both BSE and NSE. The stock’s upward movement was marked by 21,09,23,429 shares worth Rs 1,020 crore changing hands on NSE, while BSE witnessed 2.41 crore shares exchanging, surpassing the two-week average volume of 54.53 lakh shares.
Although no specific catalyst emerged for the stock’s recent momentum, investors responded positively to the company’s announcement on Wednesday regarding its newly established subsidiary, EaseMyTrip Insurance Broker Private Limited. This strategic move signifies the company’s foray into diversifying its service portfolio and entering the insurance market.
The stock reached a high of Rs 51.20 on BSE, reflecting a 15.60 percent increase on Thursday. Notably, the scrip has gained 24 percent in January.
EaseMyTrip CEO and Co-Founder Nishant Pitti expressed enthusiasm about the launch, stating, “We are elated to announce the launch of EaseMyTrip Insurance Broker Private Limited. This new subsidiary is a major step forward for us as we diversify our services and enter the insurance market. We aim to offer a complete travel ecosystem for our customers, and this new addition is a progressive step towards the same.”
The stock had witnessed a 3 percent decline in the previous session, and the announcement regarding the insurance subsidiary seemed to have reignited investor confidence.
Earlier this week, Easy Trip Planners gained attention when it suspended Maldives flights following derogatory remarks made by now-suspended Maldivian ministers against India and Prime Minister Narendra Modi.
The launch of EaseMyTrip Insurance Broker Private Limited is anticipated to strengthen the company’s position in the tourism industry and cater to a substantial market, leveraging its existing user base of 20 million.
Highlighting the business aspects, Easy Trip Planners noted that the new venture would introduce a new revenue vertical, allowing the company to scale up its business for insurance broker and related services. The registered office of the subsidiary is located in the National Capital Delhi, focusing on carrying out the Insurance Broker Business.
The deal consideration involves 60 percent subscription to the share capital in cash, with the authorised and subscribed capitals of the target entity standing at Rs 7.50 lakh, according to Easy Trip Planners.