EaseMyTrip Shares Drop Following Reports That Co-Founder Nishant Pitti Is Leaving the Company

This sale will signal complete divestment from EaseMyTrip by Pitti who will be exiting through Easy Trip Planners that is listed. The transaction is expected to be finalized by the end of the year 31st December, 2024.

EaseMyTrip Co-Founder Nishant Pitti decided to sell his stakes in Rs 780 Crore Block Deal

Reports suggest that Nishant Pitti, EaseMyTrip co-founder, has planned to part ways with the company by selling the rest 14 percent of his stake with the block deal worth Rs 780 crore. The proposed transaction aimed for confirmation on December, 31, 2024 implies the dysfunction of 500 million of IFC shares with the price of Rs 15.6 each.

Other institutions that are expected to be active during the transaction include Nexpact Limited, Multitude Growth Funds Limited, Elite Capital Fund, CRAFT Emerging Market Fund PCC’s Citadel Capital Fund and Eminence Global Fund according to Business Standard.

This deal would provide exit to Pitti from the entire EaseMyTrip that currently runs under the listed company called Easy Trip Planners. In fact, in September 2023, Pitti had sold a 14% stake of 246.5 million shares at Rs 920 million at a price band of Rs 37.11– 38.28 each to other investors.

Consolidated net profit of EaseMyTrip in the July-September quarter of FY25 declined by 45.2% to Rs 26 crore. That said, the company posted only a slight 2.1% growth in net sales in the period under consideration as compared to the first quarter of the preceding fiscal year.

In its recently filed earnings report, EaseMyTrip has disclosed that they would spend Rs 200 crore for Research and Development along with product development and setting up a manufacturing unit to capture the rapidly growing electric bus sector in India which is expected to grow at a CAGR of 24% from 2024 to 2030.

This triggered a drastic drop in the EaseMyTrip’s stock after the announcement of the deal. Around 10:22 AM, shares dipped more than 8 percent to Rs 15.67 on the BSE. Partially they modified it by the afternoon as the shares sustained trading lower than 4.5%. As of 1:At 51 PM today the stock was at Rs 16.25 , which was down by 4.69 % for the day.

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