Easy Trip Planners shares plunge 20% to record low. Here's what happened

The steep decline in share price was triggered by news that promoter Nishant Pitti plans to sell 15 crore shares, representing 8.5% of the company's total share capital, in a block deal.

In Short

• Easy Trip Planners shares plummet 20% to all-time low
• Promoter Nishant Pitti plans to sell 15 crore shares
• Market sentiment weak as stock trades below key moving averages

Shares of Easy Trip Planners Ltd (EaseMyTrip) experienced a dramatic drop in Wednesday's trading session, plummeting 20% to reach a new all-time low of Rs 32.83 .

The stock's fall coincided with an unusually high trading volume, with over 5 crore shares changing hands. This surge in trading activity resulted in a turnover of over Rs 180 crore and brought the company's market capitalisation to Rs 6,111.77 crore.

While shares of the company had nosedived 20% earlier in the session, they were trading 13.89% lower at Rs 35.33 at around 1:15 pm.

The steep decline in share price was triggered by news that promoter Nishant Pitti plans to sell 15 crore shares, representing 8.5% of the company's total share capital, in a block deal. The floor price for this block deal has been set at Rs 38, with the total transaction estimated at around Rs 580 crore.

Technical analysis suggests that the stock is on a downward trajectory, with immediate support identified at Rs 30.25, followed by another level at Rs 28.

Market sentiment remains weak, and analysts indicate that the stock could potentially fall towards the Rs 28 level, with resistance at Rs 38. The stock is trading below several key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

Established by brothers Nishant, Rikant, and Prashant, Easy Trip Planners operates as a domestic online travel agency (OTA), specialising in airline ticketing, hotel bookings, and holiday packages through various channels, including business-to-consumer (B2C), business-to-employee (B2E), and business-to-business-to-consumer (B2B2C), along with partnerships with traditional agents in Tier II and III cities.

As of June 2024, Nishant Pitti held 49,84,10,788 shares, constituting a 28.13% stake in Easy Trip Planners, while Rikant held 45,86,40,176 shares (25.88%), and Prashant owned 18,23,27,120 shares (10.29%). The promoter group collectively holds 1,13,93,78,084 shares, accounting for 64.30% of the travel agency’s total equity.

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