Shares of Easy Trip Planners Ltd experienced a dramatic decline in Wednesday’s trade, with the stock plunging by 20% to hit a record low. The share price dropped to Rs 32.83, touching its lower circuit limit, marking a significant setback for the company’s investors. The sharp fall in the stock price followed reports that promoter Nishant Pitti is preparing to offload a substantial portion of his shareholding through a block deal.

Trading activity on the BSE was particularly high, with approximately 5.66 crore shares changing hands at the time of writing. This trading volume was significantly higher than the two-week average volume of 9.87 lakh shares, indicating increased investor activity surrounding the news of the share sale. The total turnover on the stock came to Rs 203.43 crore, with Easy Trip Planners commanding a market capitalization (m-cap) of Rs 6,202.14 crore.

The stock's sharp decline came after reports surfaced that Nishant Pitti, one of the three co-founders of the company, is likely to sell 15 crore shares of Easy Trip Planners in a block deal. The sale represents 8.50% of the total share capital of the company. The floor price for the block deal was reportedly set at Rs 38, and the total deal was estimated to be worth Rs 580 crore. Investors reacted negatively to the news, causing a sharp drop in the stock price.

On the technical charts, Easy Trip Planners' stock appeared weak, with support levels identified at Rs 32, followed by Rs 30, and further at Rs 28. The stock has been under pressure in recent sessions, and the news of the promoter's stake sale has exacerbated concerns among investors. Analysts suggest that investors should monitor these key support levels closely to assess further downside risks.

Easy Trip Planners Ltd is a domestic online travel agency (OTA), founded by three brothers — Nishant Pitti, Rikant Pitti, and Prashant Pitti. The company offers services including airline ticketing, hotel bookings, and holiday packages through various channels such as B2C, B2E, and B2B2C, including partnerships with traditional travel agents in Tier II and Tier III cities across India.

As of June 2024, Nishant Pitti held 49,84,10,788 shares, which constituted a 28.13% stake in the company. His brother Rikant Pitti held 45,86,40,176 shares, accounting for a 25.88% stake, while Prashant Pitti owned 18,23,27,120 shares, or a 10.29% stake in Easy Trip Planners. Collectively, the promoter group held 1,13,93,78,084 shares, representing a 64.30% stake in the company.

With the significant shareholding of the promoter group, the potential block deal could lead to notable changes in the company’s shareholder structure. Investors will likely be keeping a close eye on the developments surrounding the block deal, as it may impact the overall sentiment and stock price movement of Easy Trip Planners.

This development comes at a time when the online travel industry is facing increasing competition, and companies like Easy Trip Planners are seeking to strengthen their positions through diversification and partnerships. However, the news of the promoter's sale has raised concerns about the company’s future prospects, leading to increased volatility in the stock price.

As Easy Trip Planners continues to navigate this challenging phase, the stock remains a focal point for both retail and institutional investors. The future performance of the stock will depend on how the market digests the promoter share sale and any subsequent developments in the company's operational strategies.

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