EaseMyTrip Shares Jump 14% Amid Electric Bus Manufacturing Announcement
Easy Trip Planners provides ticket booking, transportation arrangements, tour planning, and accommodation services but lacks any prior experience in manufacturing
Shares of Easy Trip Planners Ltd., the parent company of online travel services provider EaseMyTrip, rose as high as 14 per cent in Thursday’s trade after the company announced the incorporation of a wholly-owned subsidiary for electric bus manufacturing. The company revealed plans to invest 2 billion rupees ($23.8 million) in the production of electric buses in India.
The company said in an exchange filing, "The Board of Directors in the meeting held today i.e., Thursday, September 05, 2024 have considered and approved the incorporation of a wholly owned subsidiary of the Company for the purpose of Electric Bus Manufacturing subject to necessary approval from the Ministry of Corporate Affairs."
The company said that it will invest over the next two to three years in establishing a manufacturing plant, as well as in research and product development. During this period, it plans to produce between 4,000 and 5,000 buses. YoloBus, an inter-city bus ticket platform, will utilize electric buses.
"This move aligns with our growth plans to expand the non-air business and will help us establish a strong foothold in the growing EV and eMobility sector," said Rikant Pittie, EaseMyTrip's co-founder.
The company added that this proposal is pending the required approvals from the Ministry of Corporate Affairs. Additionally, the firm has not disclosed further details regarding the new subsidiary's establishment timeline or associated costs.
Easy Trip Planners provides ticket booking, transportation arrangements, tour planning, and accommodation services but lacks any prior experience in manufacturing. Its largest business is air travel, which accounted for roughly 95 per cent of its first-quarter revenue. Hotel bookings made up more than 4 per cent.
The shares of EaseMyTrip closed at Rs 43.08 on the BSE Sensex, a jump of 10.86 per cent. Meanwhile, on the NSE, it closed at Rs 42.77, a jump of 9.98 per cent.
The company made headlines in January when it suspended flight bookings to the Maldives after some Maldivian ministers made derogatory comments about Prime Minister Narendra Modi during his visit to Lakshadweep.
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