Addressing recent changes in his shareholding, Pitti stated that the move reflects a commitment to “driving growth and expanding EaseMyTrip’s global and international presence.”
Pitti said, “We are not going to sell anything right now. My focus remains firmly on EaseMyTrip growth, and I fully committed to supporting its expansion and success.”
While he continues to play an active role in shaping the company’s future, Pitti expressed confidence in Rikant Pittie, who assumes the role of CEO to “oversee day-to-day operations,” ensuring an “exciting and promising future for EaseMyTrip.”
He clarified that none of the promoters are currently looking to sell any additional stake in the company.
Read the verbatim transcript of the interview.
Q: I am looking at the last available public shareholding where your stake holding was 14.2% roughly. You sold about 1.4%, I believe you were looking to sell almost the entire state, but that didn’t happen. What is your intent, what are you thinking and what about the other promoters and the overall promoter shareholding in the company?
A: The first answer would be, the decision reflects in strategic focus and driving growth and expanding EaseMyTrip’s global and international presence. In my capacity as a chairman of the company, while I continue to play an active role in shaping company’s future, Rikant Pittie will be taking over as CEO to oversee day to day operations. I am confident that his business acumen and deep expertise will see an exciting and promising future for EaseMyTrip.
The second question was for selling the state. The reason to sell a portion of my state, that is just 1.4% out of 14% was a strategic step to diversify my personal investment an unlock a value after doing like 20 years for EaseMyTrip. Despite the sale, I still own 12.6% shareholding, and as promoter group whole of all the three brothers continue to own almost about 50% of the company.
Q: Weren’t you looking to sell a much larger chunk? How much of your shareholding do you want to sell right now?
A: We are not going to sell anything right now. My focus remains firmly on EaseMyTrip growth, and I fully committed to supporting its expansion and success.
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Q: So can you confirm that you Rikant and Prashant, all of you which comprise about 50% of the company shareholding that neither of you would be selling any further stake?
A: Absolutely correct. Moreover, EaseMyTrip stands out as one of the few new age companies, our overall promote equity remains almost about 50% which you will not find in other e-commerce companies.
Q: The reason you are not selling is because you couldn’t find the buyers, right? Otherwise you were looking to sell 14%?
A: No, I was not selling entire stake.
Q: You had enough buyers.
A: Yes, we were.
Q: Then, why didn’t you do a strategic sale, you could have reached out, got institutions to participate. We are seeing the institutional shareholding as well as fallen. This could have been handled in a better way, don’t you think so?
A: It is a better way. But right now, we are not focusing on selling the entire state, that was being highlighted by the media, and I have been the chairman of the company, we are just going on global expansions. Day to day activities as I mentioned, will be taken care by Rikant. We have a lot of more to deliver on the table.
Q: So you are saying that there was, if you were looking to sell that 14%, the remaining that you had, there was enough demand. But you have chose that you only wanted to sell this 1.4% and now you will not sell more. Is that the clarification?
A: That is correct.
Q: But don’t you think, from a shareholder perspective, they are absolutely baffled. You all did so many corporate actions, the retail holding went up, the institution holding came down. It could have been handled in a much better manner. Because suddenly you have so many question marks that are out there and for a business, as you are stating, you are so confident about it, could have been handled a better way. What’s your comment on that?
A: It would be a better way. Now you will see that we are completely revamping in EaseMyTrip as well. And as I told you, we are going ahead with the organic and organic growth, both pedals we are scaling it up. If you see any other companies in New Age tech businesses in particularly in the e-commerce space, you will not find any other company who will be having so much of promoter equity till now. Everybody starts raising the money. We are the first one who never raised money, who have boost up the company to the IPO. We only sold 25% in last four years of listing.
Q: Initially, when the block was on sale, it was a 14% block, your entire holding so what was the intent at that point?
A: It was not, the entire holding was not on sale. We just sold a part of that.
Q: Initially what was communicated to the bankers and what was an offer — it was an entire block of 14% right?
A: It was not entire block of 14%. The initial intent was 10% of the block, which I hold that is 1.4% of 14%.
Q: So you are clarifying that only 1.4% was on sale and that got taken up. You are saying that 14% initially, itself wasn’t on sale?
A: Yes, that’s correct.
Q: So now you are saying the promoters will not sell any further stake. If you could just tell us the timeline is this for 2025 for how long will this hold?
A: This will be holding up, we can just give you some timeline, but still we are not selling anything right now and that could be, you can say that in 2025 we are not going to sell anything.
Q: You are saying fiscal year 2025 or calendar year 2025?
A: we are not, we have no requirement to sell in calendar year 2025 also. We are entering into new vertical like corporate travel and luxury tourism. There are lot of innovations happening, leveraging AI, data analytics, including exploring blockchains to enhance consumer experiences. We are just going into promoting like eco-friendly tourism and carbon offset programs as well. A couple of things, which the company will be doing in calendar year 2025.
Q: You have resigned as a CEO, but you are going to stay on as a board member and the chairman of the board, right?
A: I am the chairman of the company, that’s correct. I am going to be taking care of the international expansion of the company throughout and Rikant will be taking care of the Indian operations, the part which is going to handle up on a day to day activity.
Q: And all is good in the hood between the three brothers?
A: That’s correct. Everything is fine.
Read Here | Two days after quitting as Easy Trip CEO, Nishant Pitti promises ‘no further stake sale’
Q: You have sold some stake in the recent past, in 2024 itself, what are you going to do with all that money?
A: We are going to diversify, we are exploring certain option, and which will be, of course, in line to travel verticals only. Like we only know travel. I am just 38 years and my 20 years have been into travel, so don’t know anything besides travel so everything will compliment EaseMyTrip.
Q: What happened to that bid for SpiceJet? Are you still interested in the M&A action in that sector?
A: No, we are not.
Q: Leave us with key numbers, your CAGR revenue outlook, say, for the next one to two years, the cash levels in the company and the margin that you would like to maintain since you are committing, since you are saying promoters are absolutely committed to the business of the listed entity?
A: Till now, we were focusing only on to the air travel part. Now, as I told you, we are focusing on different areas of travel, this could be non-air also. In that the margin numbers are too much like compared to the just flight tickets, the margins into a hotel segment and the holiday segments are much more compared to flight tickets.
Q: How much is the cash, what is the cash level in the company right now?
A: I think it’s almost about ₹400 crore.
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