Easy Trip Planners Sets Record Date for 1:1 Bonus Share Allocation

Easy Trip Planners Ltd. has officially announced that Thursday, November 28, 2024, will serve as the record date for identifying shareholders eligible for its 1:1 bonus share issue. This marks an important milestone for the company as it moves forward with its third bonus share issuance.

Shareholders' Approval Received for Bonus Issue

In a filing with stock exchanges, Easy Trip Planners confirmed that it had secured shareholders' approval for the proposed 1:1 bonus share issue. The announcement follows earlier communications by the company on October 14, 2024, and November 15, 2024, which detailed the Board of Directors' recommendation and subsequent approval from shareholders.

Details of the Bonus Share Issue

The 1:1 bonus issue means that shareholders will receive one additional share for every share they currently hold as of the record date. The issuance of bonus shares is part of the company's strategy to reward its investors and utilize free reserves effectively.

Previous Bonus Share Issuances

This marks the third time Easy Trip Planners is issuing bonus shares. In November 2022, the company offered bonus shares in a 3:1 ratio, granting three additional shares for every share held. Earlier in March 2022, it had issued bonus shares in a 1:1 ratio, similar to the current offer.

Purpose of Issuing Bonus Shares

The issuance of bonus shares helps companies capitalize on their free reserves while increasing their paid-up capital and Earnings Per Share (EPS). These shares, also called "free shares," are distributed to shareholders at no additional cost. The process enhances shareholder value and attracts more investor interest.

Eligibility for Bonus Shares

To qualify for the bonus shares, investors must purchase the stock before the ex-date. Investors who buy shares on or after the ex-date will not be eligible for the bonus allocation. This highlights the importance of timing for shareholders aiming to benefit from the offer.

Promoters' Stake in Easy Trip Planners

As of the end of the June quarter, promoters of Easy Trip Planners held a 64.30% stake in the company. This significant holding underscores their confidence in the company’s growth and financial strategy.

Stock Performance in 2024

Despite the announcement of the bonus issue, shares of Easy Trip Planners have been under pressure. The stock is currently trading 2.03% lower at ₹29.49 and has declined by approximately 30% in 2024. Investors are keenly watching how the bonus issue impacts the company’s market performance in the coming months.

Conclusion

Easy Trip Planners’ decision to issue bonus shares reflects its commitment to rewarding shareholders and maintaining a robust financial structure. The upcoming 1:1 bonus share issue is expected to enhance investor confidence and provide long-term value, even as the stock navigates current market challenges.