EaseMyTrip shares fall sharply after Nishant Pitti set to step down
EaseMyTrip shares fall sharply as it was announced that co-founder Nishant Pitti will finally sell off the remaining equity that he has in the company. This move comes as part of a block deal scheduled on 31st December, 2024 where the remaining 14% equity of Pitti will be sold off to an investor, with an approximate valuation of ₹780 crore.
The agreement features 500 million shares sold at ₹15.6 each and would attract some of the most influential institutional investors such as Nexpact Limited, Multitude Growth Funds Limited, Elite Capital Fund, Citadel Capital Fund under CRAFT Emerging Market Fund PCC, and Eminence Global Fund.
This deal will mark Pitti’s full exit from EaseMyTrip, a company operated by the listed entity Easy Trip Planners. In September 2023, Pitti had sold a similar 14% stake in the company, which included 246.5 million shares, for ₹920 crore. That deal was struck at a price range of ₹37.11 to ₹38.28 per share.
EaseMyTrip’s Financial Summary
In its latest quarterly report, EaseMyTrip reported a significant drop in consolidated net profit. For the July-September quarter of FY25, profit fell by 45.2% year-on-year to ₹26 crore. On the other hand, the company recorded a modest 2.1% rise in net sales compared to the same period last year.
The company further elaborated that it will invest ₹200 crore in research, product development, and manufacturing over the next two to three years. This step aligns with its efforts to enter the Indian electric bus market, which is expected to grow at a compound annual growth rate (CAGR) of 24% between 2024 and 2030.
Stock Market Reaction
News of the stake sale plan was very active in the stock market. By mid-morning on December 31, shares of EaseMyTrip fell over 8%, trading at ₹15.67 on the BSE. While the stock staged a comeback thereafter, it still closed the session lower by 4.69%, trading at ₹16.25 apiece till early afternoon.
As Pitti takes a step out of the organization, EaseMyTrip’s resilience in the management of this situation and execution of its expansionist and diversification agendas is closely observed by the various stakeholders.
