Flight Ban and Commitment to Lakshadweep! EaseMyTrip Surges 6% on Stock Market Amidst India-Maldives Tensions

EaseMyTrip, a travel agency based in Delhi, suspended all Maldives flight bookings on its website on January 8 amid the ongoing diplomatic spat between India and the Maldives. However, on the same day, the company's shares, which go by the brand EaseMyTrip, surged more than six percent after it incorporated a subsidiary company under the name EaseMyTrip Insurance Broker Private Limited, with promoter Nishant Pitti as a director.

Strategic Expansion Through Subsidiary

According to the corporation, this subsidiary will give it access to a new revenue stream and allow it to grow its insurance broker and related services business. As of September 30, Pitti owned a 28.67 percent share in Easy Trip Planners, a company that goes by the name EaseMyTrip. During the same period, the promoter group controlled a 65.54 percent stake in the company. The primary purpose of EaseMyTrip Insurance Broker Private Ltd, which has its registered office in National Capital Delhi, is to conduct insurance broker business.

Capital Infusion Details

Easy Trip Planners stated that 60% of the share capital subscription is paid for in cash as part of the deal consideration. The target entity's authorised and subscribed capital was Rs 7.50 lakh, according to the corporation. On the National Stock Exchange, the stock ended the day 4.7% higher at Rs 43.35 (NSE). The stock has underperformed the benchmark Nifty 50, which has increased by around 20% over the past year, having dropped by more than 18%.

The increase in share price on January 8 coincides with Pitti's announcement that EaseMyTrip has banned all flights to the Maldives due to remarks made by now-suspended Maldivian ministers disparaging Prime Minister Narendra Modi and India during the latter's recent visit to Lakshadweep.

Suspension of Maldives Flight Bookings

In a Monday post on X, the former Twitter platform, Patti stated that EaseMyTrip has halted all reservations for flights to the Maldives as a show of support for the country. “Water & beaches of Lakshadweep are as good as Maldives/Seychelles We at @EaseMyTrip will come up with crazy special offers to promote this pristine destination that our PM @narendramodi has recently visited!” Pitti wrote.

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