Easy Trip Planners saw its shares surge nearly 5% in the early trading hours on Monday after the travel agency company announced that it had received its board’s approval to set up a new 5-star hotel in Ayodhya with an investment of up to Rs 100 crore.
Shares of EaseMyTrip’s parent company hit an intraday high of Rs 53.55, 4.6% higher than its previous closing price on the National Stock Exchange (NSE). However, the stock lost all early gains and settled 4.4% lower at Rs 48.85.
According to the company’s exchange filing dated February 12, its Board of Directors has given its in-principal approval to enter into a joint venture with Jeewani Hospitality Pvt Ltd to establish a new 5-star hotel in Ayodhya. The hotel would be situated in a prime location, within 1 kilometre from the Ram Mandir.
EaseMyTrip also informed the exchanges that it will invest up to Rs 100 crore in the company heading the project, Jeewani Hospitality. Post finalisation, the investment will represent a 50% stake in the latter’s total paid-up share capital on a fully diluted basis through an equity swap.
After the Pran Pratishtha of the Ram Mandir, Ayodhya has seen over 24 lakh visitors, making it a “prime investment destination” for hospitality businesses, said Nishant Pitti, CEO & Co-Founder of EaseMyTrip.
As per the press release, the religious tourism sector witnessed 143.9 crore tourists in 2022 and is expected to generate a revenue of Rs 5,900 crore by 2028.