Easy Trip Planners shares skyrocket 17% after promoter’s reassurance on stake sale

In a significant boost for investors, shares of Easy Trip Planners Ltd, the operator of the online travel company EaseMyTrip, surged by over 17% in early trade on Monday, January 6, following an assurance from the company’s former CEO and promoter, Nishant Pitti. The stock reached an intraday high of ₹18.25 per share on the National Stock Exchange (NSE), marking a 17.6% increase from its previous close, before trading at ₹16.76 apiece by mid-morning.

The sharp rise in the company’s stock comes days after Pitti, who stepped down as CEO on January 1, addressed concerns regarding his recent stake sale. On December 31, Pitti divested a 1.4% stake in Easy Trip Planners for ₹78.32 crore via an open market transaction, reducing his individual holding in the company to 12.8%. This move also brought the overall promoter holding down to 48.97% from 50.38%. Despite stepping down, Pitti continues as Chairman of the company.

No further stake sale, promoter assures investors

Pitti’s announcement on January 3 clarified his commitment to the company’s growth and assured investors that there would be no further sale of his stake. “With a talented team and Rikant’s visionary leadership, EaseMyTrip is on a strong growth path,” Pitti stated in his post. “To honour your trust, I have thoughtfully limited my share sale and confirm there will be no further sales from my side. Thank you for your unwavering support. Together, we will achieve even greater success.”

On January 6, Pitti took to social media platform X (formerly Twitter) to reiterate, “Confirming again there is no promoter selling.” These statements appear to have calmed investor concerns, fueling a rally in the company’s shares.

Leadership transition and future plans

Following Nishant Pitti’s resignation as CEO, Rikant Pittie, his brother and the company’s current Chief Financial Officer, has taken over the role of Chief Executive Officer. This transition is expected to bring a renewed focus to the company’s operations and vision for growth.

Looking ahead, Nishant Pitti has emphasised his focus on steering the company’s global expansion and exploring new business verticals such as corporate travel and luxury tourism. Additionally, the company aims to leverage cutting-edge technologies, including artificial intelligence, data analytics, and blockchain, to enhance customer experiences. It also plans to promote eco-friendly travel through carbon offset initiatives.

“As Chairman, I’ll focus on shaping our future and driving international expansions while Rikant steps in as CEO to lead day-to-day operations and drive our vision forward,” Pitti stated. “Big things are coming!”

Market reaction

The market’s response to Pitti’s reassurance has been overwhelmingly positive. By 9:30 AM, the stock had risen 6% to ₹16.45 per share, and by 10:45 AM, it was trading at ₹16.76, up 8.06% on the NSE.

Investors looking to capitalise on the potential of online travel companies may find this a good opportunity to buy shares online, especially given the company’s promising growth trajectory and strategic plans.

Summing up

Easy Trip Planners’ stock rally reflects investor confidence in the company’s future and its leadership’s commitment to growth. With clear assurances from Nishant Pitti and a focused approach under Rikant Pittie’s leadership, the company appears poised for continued success in the competitive online travel market.