Nishant Pitti, co-founder of EaseMyTrip, is set to divest his remaining 14.21% stake in the company through a block deal valued at approximately ₹780 crore.
This transaction, involving the sale of 50 crore shares at ₹15.60 per share, is scheduled for December 31, 2024, and will mark Pitti's complete exit from the online travel platform. Prominent institutional investors, including CRAFT Emerging Market Fund PCC’s Citadel Capital Fund, Elite Capital Fund, Multitude Growth Funds Limited, Nexpact Limited, and Eminence Global Fund, are expected to participate in the deal.
Earlier, in September 2023, Pitti sold a similar 14% stake for ₹920 crore. Following news of the impending sale, shares of Easy Trip Planners experienced a significant decline, dropping nearly 10% to an intraday low of ₹15.38 on the BSE. This development comes amid a period of financial challenges for the company, which reported a 45.2% decrease in consolidated profit to around ₹26 crore in Q2 FY25, despite a marginal increase in net sales. Pitti's exit signifies a major shift in the company's ownership structure, leaving EaseMyTrip under the control of institutional investors and other stakeholders.
Market Reaction
Following the announcement, shares of Easy Trip Planners Ltd. experienced a significant decline. On December 31, 2024, the stock plummeted by 9.9% on the BSE, reaching an intraday low of ₹15.36. Although there was a partial recovery, the shares remained down by 6.5% at ₹15.93 per share as of 11:00 am.
Nishant Pitti: A Brief Biography
Born in 1986 in Delhi, Nishant Pitti is a prominent Indian travel entrepreneur. He co-founded EaseMyTrip in 2008 alongside his brothers, Rikant and Prashant Pitti. Under his leadership, the company evolved into one of India's leading online travel platforms, boasting a gross booking revenue of ₹3,716 crore and a profit after tax of ₹106 crore in FY22.
Career and Achievements
Pitti's entrepreneurial journey began with the establishment of EaseMyTrip, which he bootstrapped without external funding. His innovative approach and commitment to customer satisfaction propelled the company to new heights. In addition to his ventures in the travel industry, Pitti ventured into film production as a branding initiative for EaseMyTrip, contributing to Bollywood films such as "Guest iin London" and "Manikarnika: The Queen of Jhansi."
Impact on EaseMyTrip
Pitti's departure marks a significant transition for EaseMyTrip. His leadership and vision were instrumental in the company's growth and success. The sale of his stake may influence the company's strategic direction and investor sentiment in the short term. However, the remaining leadership team is expected to continue steering the company towards sustained growth.
Nishant Pitti's exit from EaseMyTrip signifies the end of a remarkable chapter in the company's history. His contributions to the travel industry and entrepreneurial spirit have left an indelible mark. As EaseMyTrip navigates this transition, stakeholders will keenly observe its strategic moves and market performance in the evolving travel sector.
