Why Did EaseMyTrip Co-Founder Prashant Pitti Pledge Shares Worth Rs 93.6 Crore?
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Synopsis
Prashant Pitti, co-founder of EaseMyTrip, has pledged shares valued at Rs 93.6 crore for personal use, raising investor concerns. This comes amidst scrutiny over the company's connections to a betting app and its recent financial performance.
Key Takeaways
- Prashant Pitti has pledged shares worth Rs 93.6 crore.
- The pledge accounts for 2.54% of the company's equity.
- Concerns arise regarding the company's financial stability.
- EaseMyTrip reported a net profit decrease in Q4 FY25.
- The company is addressing scrutiny related to a betting app.
New Delhi, July 4 (NationPress) Prashant Pitti, co-founder and executive director of the online travel platform EaseMyTrip, has pledged 9 crore shares in the company to Motilal Oswal Financial Services for "personal use". This pledge was executed on June 26 and represents approximately 2.54 percent of EaseMyTrip’s total equity, as detailed in a regulatory filing to the Bombay Stock Exchange (BSE).
With the current market price being Rs 10.40, the pledged shares are valued at nearly Rs 93.6 crore. While the specific reasons for this personal usage remain undisclosed, such actions by promoters frequently trigger concerns among investors regarding their financial stability and the future stability of the company’s shareholding.
This situation arises as the company is already under scrutiny. Earlier this year, EaseMyTrip issued a public statement refuting any connections with the Mahadev Betting App, following investigations by the Enforcement Directorate.
The company emphasized its commitment to ethical business practices and cooperation with authorities. On the financial side, led by Nishant Pitti, the company reported a net profit after tax (PAT) of Rs 13.9 crore in Q4 FY25, a decline from Rs 34 crore in Q3 FY25.
During the fourth quarter of the financial year 2024-25 (Q4 FY25), EaseMyTrip experienced a slight reduction in revenue, amounting to Rs 139 crore, down from Rs 164 crore the previous year. The year-on-year (YoY) decline was even more significant, with revenue dropping 15 percent from Rs 164 crore reported in Q4 FY24.
Nevertheless, for the entire fiscal year, the company’s revenue was steady at Rs 587 crore. Profits before tax for FY25 reached Rs 143 crore.
As of 2:07 p.m., EaseMyTrip shares were trading at Rs 10.40, reflecting a decrease of Rs 0.02 or 0.19 percent on the Bombay Stock Exchange (BSE) on Friday.
Point of View
The recent pledge of shares by Prashant Pitti highlights potential financial uncertainties within EaseMyTrip. As the company navigates scrutiny from investigations and faces declining profits, it’s crucial for stakeholders to monitor these developments closely.
NationPress
15/07/2025
Frequently Asked Questions
What is the value of the shares pledged by Prashant Pitti?
The pledged shares are valued at approximately Rs 93.6 crore based on the market price.
Why did Prashant Pitti pledge the shares?
The pledge was made for 'personal use', but specific details have not been disclosed.
How much of EaseMyTrip's equity does the pledge represent?
The pledge represents around 2.54 percent of EaseMyTrip's total equity.
What has been the recent financial performance of EaseMyTrip?
In Q4 FY25, EaseMyTrip reported a net profit of Rs 13.9 crore, a decline from Rs 34 crore in the previous quarter.
What other issues is EaseMyTrip facing?
The company has been under scrutiny regarding its alleged connections with the Mahadev Betting App.
