Easy Trip Planners shares surged 16% today. Here's why

Shares of Easy Trip Planners Ltd, India’s second largest online travel tech platform, climbed nearly 16 per cent in Thursday's trade after taking a breather in the previous session. The rise in the stock was accompanied by high turnover on both BSE and NSE. Volume -wise, the counter saw 21,09,23,429 shares worth Rs 1,020 crore changing hands on NSE so far. On BSE, a total of saw 2.41 crore shares changing hands against a two-week average volume of 54.53 lakh shares.

While there was no fresh reason for the stock to extend its recent sharp run, the company had on Wednesday updated investors of its new subsidiary, EaseMyTrip Insurance Broker Private Limited. The strategic move is seen as the company's bid to diversify service portfolio and tap into the insurance market.

On Thursday, the stock rose 15.60 per cent to hit a high of Rs 51.20 on BSE. The scrip is up 24 per cent in January so far.

"We are elated to announce the launch of EaseMyTrip Insurance Broker Private Limited. This new subsidiary is a major step forward for us as we diversify our services and enter the insurance market. We aim to offer complete travel ecosystem for our customers and this new addition is a progressive step towards the same. With our strong standing for excellence and customer satisfaction, we are confident that we will make a lasting impact on our existing and new customers,’’ said Nishant Pitti, CEO and Co-Founder at EaseMyTrip said on Wednesday.

The Easy Trip Planners stock settled 3 per cent lower in the previous session. In a note, Easy Trip Planners said the new venture may solidify EaseMyTrip's position in the tourism industry and cater to a big market with its 20 million userbase.

The stock was earlier in news this week after the company suspension of Maldives flights by EaseMyTrip after a few now-suspended Maldivian ministers made derogatory remarks on India and the Prime Minister Narendra Modi following his recent visit to Lakshadweep.

Easy Trip Planners had on January 6 suggested that EaseMyTrip Insurance Broker Private Limited would add a new revenue vertical for the company and “enable it to scale up its business for insurance broker and related services. Its registered office is in the National Capital Delhi and the main object inter-alia is to carry out the Insurance Broker Business.”

On the deal consideration, Easy Trip Planner said 60 per cent subscription to the share capital is in cash. The authorised and subscribed capitals of the target entity stood at Rs 7.50 lakh, the company said.

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