Board Of EaseMyTrip Approves The Issuance Of Bonus Shares And A Stock Split

The issuance of bonus shares in a 3:1 ratio and a stock split was approved on Monday (October 10) by the board of directors of listed travel technology startup EaseMyTrip.

The startup claimed that its board had approved dividing each current equity share with a face value of INR 2 into two equity shares with a face value of INR 1 in an exchange filing.

Additionally, the board authorized the issuance of bonus shares at a 3:1 ratio, meaning that three bonus shares would be issued for each fully paid-up equity share of the company. According to the filing, the bonus shares would be given from the startup's profit-derived free reserves as of March 31, 2022.

According to EaseMyTrip, free reserves of INR 130.37 Cr would be needed for implementing the bonus issue, and as of March 31, 2022, it had free reserves of INR 196.31 Cr.

By December 8, 2022, according to EaseMyTrip's prediction, the bonus shares would have been credited.

A stock split adds more shares of a firm in the stated ratio, increasing the stock's liquidity. In contrast, bonus shares are issued by a firm based on the number of shares that shareholders currently own.

EaseMyTrip explained in the filing that the company has expanded over time as justification for the stock split and distribution of bonus shares. The firm claimed that as share prices rose, it would be more difficult for tiny prospective owners to invest in the company's future.

The statement read: “Keeping with the spirit of inclusion and in order to reward the shareholders, the board of directors at its meeting held today approved and recommended the said corporate actions,”