EaseMyTrip Cofounder Nishant Pitti Offloads 1.4% Stake
Nishant Pitti, cofounder, CEO, and promoter of travel-tech giant EaseMyTrip, has sold a 1.41% stake in the company via a block deal on December 31, 2024. The sale involved approximately 5 crore shares at a price of INR 15.68 per share, amounting to a total of INR 78.3 crore.
Impact of the Stake Sale
Following this transaction, Pitti’s ownership in EaseMyTrip has reduced to 12.80%. The sale, which initially triggered reports that he intended to sell his entire remaining stake of 14.21%, led to volatility in the company’s stock.
- Shares of EaseMyTrip saw a 10% dip during intraday trading amidst speculation about Pitti’s complete exit.
- By the end of the trading day, the stock recovered slightly, closing 6.9% lower at INR 15.87 on the BSE.
Major Transactions During the Block Deal
- As per NSE data, Arunaben Sanjaykumar Bhatiya purchased 2.4 crore shares at INR 15.86 per share during the block deal.
- This is not the first major divestment by Pitti. In September 2024, he sold 24.65 crore shares for INR 920 crore via multiple block deals.
Recent Developments at EaseMyTrip
Amid these stake sales, EaseMyTrip has been actively pursuing growth and expansion strategies:
1. Equity and Bonus Issues:
- Third Bonus Issue: The board approved a 1:1 bonus issue earlier this year.
- Fundraising: In December, the company raised INR 234.03 crore from seven investors via a preferential equity issue.
2. Strategic Acquisitions:
- Planet Education Australia: Acquired a 49% stake in the study-abroad consulting service for INR 39.20 crore in November 2024.
- Medical Tourism Push:
- Acquired a 30% stake in Rollins International for INR 60 crore.
- Acquired a 49% stake in Pflege Home Healthcare Center LLC for INR 30 crore.
3. Hospitality Expansion:
- Partnered with the Jeewani Group to invest INR 100 crore in building a five-star hotel in Ayodhya as part of its foray into the hospitality sector.
Financial Performance
The company’s consolidated profit after tax (PAT) for Q2 FY25 fell by 42.8%, dropping to INR 26.8 crore compared to INR 46.9 crore in the same quarter last year. Despite this, the company continues to diversify its offerings and strengthen its portfolio.
Importance of the Stake Sale
1. Market Impact:
- Nishant Pitti’s divestments reflect strategic realignments and may influence market perceptions of the company.
- The immediate drop in share prices indicates investor sensitivity to changes in promoter holdings.
2. Company Growth and Expansion:
- Despite the stake sale, EaseMyTrip continues to focus on expansion across sectors, including hospitality, medical tourism, and education services.
- The recent fundraising and acquisitions demonstrate its commitment to long-term growth.
3. Investor Confidence:
- While divestments may raise questions, the company’s consistent push into new verticals and strategic acquisitions could reassure investors of its growth trajectory.
Nishant Pitti’s latest stake sale is a significant development for EaseMyTrip, signaling a reduction in promoter ownership while leaving the company’s aggressive expansion strategies intact. As the travel-tech major navigates a competitive and evolving landscape, its strategic initiatives in hospitality, education, and medical tourism indicate a strong focus on diversification and sustained growth.
