Easy Trip Planners on Monday announced a stock split in the ratio of 1:2 and three for one bonus issue. The company said it would credit/dispatch bonus shares within two months from the board approval date, i.e. by December 8.

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On the rationale behind the split and issue of bonus shares, Easy Trip Planners said the company and its subsidiaries had grown significantly, in terms of business and performance, over the years.

"This is reflected in the share price of the company. As and when the stock price rises further, it will be increasingly difficult for small potential shareholders to partake in the company's future. Keeping with the spirit of inclusion and to reward shareholders, the board has approved and recommended the said corporate actions," it said in a filing.

A stock split is generally undertaken to reduce the stock price for easy purchase and to increase liquidity.

After the news of the stock split and bonus issues, the shares of the travel company rose close to 6 percent on the BSE on Monday to 426.65.

Easy Trip further informed that it had increased in authorised share capital from Rs 75,00,00,000 to Rs 200,00,00,000 and altered the Capital Clause of the Memorandum of Association.

Earlier, the company had informed that its board of directors would consider a bonus issue and stock split in its October 10 meeting, after which the company's stock surged.

The company made its stock market debut on March 19, 2021. Easy Trip Planners operates the popular ticketing platform EaseMyTrip.com. The company is enrolled in the business of booking services related to travel and tourism.

Also Read: Easy Trip Planners stock flies on bonus issue and stock split plan

First Published:Oct 10, 2022 11:01 AM IST