EaseMyTrip Shares Jump 3.40%
EaseMyTrip Shares Jump 3.40% After Securing Nod To Raise INR 234.03 Cr Via Preferential Issue
Travel portal EaseMyTrip also posted a jump of 3.40 percent in its share prices after its latest reveal. The company got the nod to increase INR 234.03 crore through a preferential offering. This comes as the travel platform plans to issue 12.84 crore equity shares at INR 18.22 each. Seven investors, including Jeewani Hospitality and Jacqueline Fernandez, will participate in this funding round. The development reflects strategic steps by EaseMyTrip to bolster liquidity and support growth.
Key Details of the Fundraising Initiative
The board’s approval involves allotting 12.84 crore fully paid-up equity shares. Jeewani Hospitality Private will acquire 5.48 crore shares worth INR 100 crore. Additionally, Rollins International Private Limited will receive 3.29 crore shares valued at INR 60 crore.
Pflege Home Health Care Centre L.L.C will receive 54.88 lakh shares worth INR 10 crore through non-cash payments. Jacqueline Fernandez will get 27.44 lakh shares worth INR 5 crore for cash consideration. Other investors include Bhisham Sheoran and Gagandeep Singh.
Bhisham Sheoran will secure 1.08 crore shares valued at INR 19.83 crore. Meanwhile, Gagandeep Singh and Sanket Champaklal Shah will each get 1.07 crore shares worth INR 19.60 crore. This strategic fundraising highlights investor confidence despite recent business fluctuations.
EaseMyTrip Shares Jump 3.40%: Mixed Financial Results
For Q2 FY24 ending September 30, 2023, EaseMyTrip reported a 67.2% increase in net profit to INR 45.6 crore.
Hotel business revenue showed a massive 140% year-on-year surge to INR 32.6 crore. However, revenue from flight bookings dropped by 22.5%, falling to INR 9.25 crore. Gross booking revenue stood at INR 2,075.6 crore for the quarter.
EaseMyTrip demonstrated operational resilience with improved financial performance in Q2 FY24.. This mixed financial performance highlights challenges and diversification strategies as the company navigates changing market trends.
Strategic Diversification & Future Prospects
EaseMyTrip’s recent acquisitions align with its diversification strategy. In November 2024, the company revealed plans to acquire a 49% stake in Planet Education Australia for INR 39.2 crore. Moreover, it will acquire a 50% stake in Jeewani Hospitality for INR 100 crore.
These acquisitions aim to strengthen EaseMyTrip’s revenue streams and reduce dependency on a single business segment. Despite challenges in its core flight booking segment, the company’s hotel revenue performance shows significant potential.
The share price spike reflects investor optimism following this fundraising approval.
Conclusion
The recent change in share price of EaseMyTrip also depicts that investors have faith in its strategies. The INR 234.03 crore funding through the preferential issue will strengthen operational flexibility.
The company’s strategic moves, despite a profit slump, align with future growth ambitions. EaseMyTrip continues to explore diversification to address challenges and unlock opportunities.
With improved liquidity and new strategic acquisitions, the company’s future looks promising.
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