EaseMyTrip Plans To Open 5 Star Hotel In Ayodhya; Shares Sink 7% From Day's High
EaseMyTrip is set to enter the hospitality business with the proposal to open a five-star hotel in Ayodhya
EaseMyTrip Share Price: EaseMyTrip is set to enter the hospitality business with the board of the online travel aggregator approving the proposal to open a five-star hotel in Ayodhya, close to the vicinity of Ram Temple, which was inaugurated on January 22.
Shares of online travel aggregator EaseMyTrip fell seven per cent from its intraday high on February 12. In early trade, shares surged 5 per cent but pared their gains to fall 2 per cent in the red. As of 10.50 am, shares of the company were trading at Rs 50.6, lower by 1 per cent on the NSE compared to the previous session’s closing price.
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EaseMyTrip received an in-principle approval from its board for a joint venture. The firm will commit Rs 100 crore as one of the joint venture partners, in Jeewani Hospitality, the entity super heading the project under incorporation.
The company said in a statement, “The Board of Directors (“Board") of Easy Trip Planners Limited (“Company") in its meeting held today, i.e., on February 11, 2024, has, inter alia considered and in-principally approved the proposal to open a 5-star hotel in Ayodhya which is less than 1Km from Shree Ram Mandir through an investment of an amount of up to ₹100 crores in Jeewani Hospitality Private Limited, a company under incorporation for 50% of the aggregate share capital of the said company on a fully diluted basis through swap i.e., fresh issuance of the Company’s own equity shares on preferential basis."
On February 9, EaseMyTrip reported a 9.6 per cent increase in net profit at Rs 45.6 crore in the December quarter of FY24, up from Rs 41.69 crore during the same period a year ago on the back of robust growth in travel demand.
Sequentially, the company’s profits dropped from Rs 47 crore in the September quarter of FY24.
The travel aggregator reported a total income of Rs 165 crore, up 18 per cent year-on-year (YoY) from Rs 139.8 crore. In Q2, the company had reported Rs 144 crore in income from operations.
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