Easy Trip Planners to Acquire 30% Stake In Rollins International

Easy Trip Planners recently announced its agreement to acquire a 30% stake in Rollins International Private Limited, a company operating in the wellness and healthcare sector. The deal, valued at Rs.60 crore, will help diversify beyond its core business of travel planning. The acquisition will be completed via an equity share swap, where Easy Trip will issue its fully paid-up equity shares to Rollins in exchange for equity in the company.

Rollins’ Role in the Wellness Market

Founded in 2017, Rollins International has established itself as a known player in the wellness industry. The company offers a range of gluten-free and lactose-free food products, allergen-free health supplements, and technology-driven healthcare solutions. Rollins has experienced consistent growth over the past few years, with its revenue increasing from Rs.530.96 lakhs in FY22 to Rs.2,134.98 lakhs in FY24, showcasing its expanding presence in the health-conscious consumer market.

Diversification for Easy Trip

This acquisition is a departure from Easy Trip Planners’ traditional travel business, reflecting its intent to diversify and tap into new growth areas. By acquiring 17,03,973 equity shares, representing a 30% stake in Rollins, Easy Trip plans to capitalize on the rising demand for health and wellness products, a sector that has seen major growth in recent years. This aligns with the company’s broader strategy of expanding its operations into high-potential industries.

Regulatory Approvals & Timeline

The acquisition is subject to the completion of customary conditions, including obtaining necessary regulatory approvals and shareholder consent. The process is expected to be completed within the next three to four months, after which Rollins will officially become an associate company of Easy Trip.

Market Performance

​​Over the past year, Easy Trip Planners’ share price has seen a decline of -19.88%, with a -15.85% drop year-to-date. However, in a recent positive shift, the stock has rebounded by approximately 6% over the past week and is trading at Rs.34.25 per share.

Conclusion: While this acquisition signals Easy Trip’s shift towards diversification, investors should consider the potential risks and rewards. The move into the wellness sector represents a calculated step into a high-growth market, aligning with the company’s long-term objectives.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.