On October 9, shares of Easy Trip Planners experienced a significant surge of over 4 percent during intra-day trading. This increase follows the company’s announcement regarding a board meeting scheduled for October 14, where the possibility of issuing bonus shares will be a key agenda item.
The company disclosed, “In accordance with Regulation 29 and other applicable Regulations under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we inform you that a meeting of the Board of Directors is set to occur on Monday, October 14, 2024, at 01:00 P.M. via video conferencing. This meeting will address the potential approval for the issuance of bonus shares.” This proactive communication reflects the company’s commitment to transparency and shareholder engagement.
Understanding Bonus Shares
Bonus shares are a strategy employed by companies to reward their existing shareholders by issuing additional shares at no extra cost. These shares are granted based on the proportion of shares already owned by shareholders, commonly in ratios such as 1:2 (one bonus share for every two existing shares). The source of these bonus shares typically comes from the company’s retained earnings or reserves. By doing so, the company enhances liquidity in the market without changing its ownership structure. Although they do not inject new capital into the company, bonus shares can lead to a more favorable trading environment by increasing affordability for potential investors.
Stock Price Performance Overview
Easy Trip Planners’ stock reached a peak of ₹34.57, marking an impressive rise of up to 4.85 percent. Following this upward movement, the share price remains approximately 36 percent lower than its peak of ₹54, recorded in February 2024. On a positive note, the stock has appreciated 9 percent from its recent 52-week low of ₹31.71 reached earlier this week. This suggests a trend towards recovery, which may entice both current and potential investors.
Yearly Performance Insights
Despite the recent gains, the share price has seen a decline of over 19 percent over the past year and a decrease of more than 14 percent year-to-date (YTD). In October, the stock remains relatively stable, showing a slight increase of half a percent so far after two months of consecutive losses. Notably, it dropped more than 14 percent in September alone and was down 4 percent in August, reflecting the volatile nature of the market. As investors look ahead to the upcoming board meeting and the potential for bonus shares, there may be renewed interest in the stock, providing opportunities for strategic investment decisions.
