Shares of Easy Trip Planners climbed over 6 per cent in Monday’s trade after its board approved a bonus issue, in addition to stock split.
The scrip climbed 6.41 per cent to hit a high of Rs 428 on BSE. With this, the scrip has jumped nearly 12 per cent since October 4, when it informed stock exchanges regarding the Monday’s board meeting.
On Monday, Easy Trip Planners said its board considered and approved sub-division of each existing equity share of face value of Rs 2 into two equity shares of face value of Re 1. It announced issue of three bonus equity shares for every one fully paid-up equity share.
Besides, the board said authorised share capital of the company will be increased to Rs 200 crore from Rs 75 crore subject to shareholder’s approval and necessary filings with the authorities and their approvals.
“The company and its subsidiaries have 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 in order to reward the shareholders, Easy Trip Planners said, its board of directors at its meeting on Monday, approved and recommended the said corporate actions.
The company had 21,72,90,000 fully paid-up equity shares as of September 30, BSE data suggested. A bonus in 3:1 ratio would result in 65,18,70,000 shares of face value Rs 2. These 65,18,70,000 shares of face Rs 2 each would then turn into 1,30,37,40,000 shares of face value Re 1, post the 1:1 stock split.
The bonus shares would be issued out of free reserves created out of profits available as of March 31, 2022, Easy Trip Planners said. The company said it would complete the corporate action on or before December 8, subject to necessary approvals.