Online travel platform EaseMyTrip's board approves issuance of bonus shares

EaseMyTrip said its board has approved issuance of bonus shares with a view to allow its shareholders increase their equity and gain greater exposure to its future growth

Online travel platform EaseMyTrip on Wednesday said its board has approved issuance of bonus shares with a view to allow its shareholders increase their equity and gain greater exposure to its future growth.

The board of directors of the company at its meeting held on January 12, 2022, have approved and recommended the issuance of fully paid-up bonus shares in the ratio of 1:1, out of its free reserves created out of profit, EaseMyTrip said in a statement.

It will be subject to the shareholders' approval through a postal ballot and the record date will be announced in due course, the company added.

Commenting on the issuance of bonus shares, EaseMyTrip CEO and Co-Founder Nishant Pitti said, "Despite the challenges faced due to the pandemic, EaseMyTrip has consistently recorded profitable results due to a sustainable and resilient business model."

He further said, "Through the issuance of bonus shares, we want to reward our existing shareholders, allowing them to increase their equity in the group and gain greater exposure to our future growth."

Looking at the new avenues for growth from the non-air segment and continued focus on financial and operational efficiency, the company will continue to generate value for its stakeholders, Pitti said.

EaseMyTrip said the plan for bonus shares comes on the heels of strong results achieving a four-fold jump in profit in the second quarter of FY22. It has also declared interim dividends twice since its listing in March 2021.

The company has recently announced acquisition of companies like Spree Hospitality, Traviate and Yolobus to strengthen its presence in the non-air segment.