Gurugram-based online travel aggregator platform Yatra has received a letter from the NASDAQ stock market, notifying the firm that it has not maintained a minimum closing bid price of $1 per share from the past 30 days, and has hence been given an initial period of 180 days to regain the compliance of the minimum price requirement.
As per the NASDAQ listing rules, a company needs to maintain a bare minimum of $1 per share bid price to be a part of the listed companies.
However, when a company fails to do so for 30 consecutive days, they are issued a notification letter.
Founded by Sabina Chopra, Manish Amin and Dhruv Shringi in 2006, Yatra (1) is a holistic travel services aggregator that provides travel-related services like domestic and international air travel, hotels, homestays, holiday packages, bus ticketing, rail ticketing, travel activities, etc.
Impact of COVID-19 on Travel
The fall in the share price of Yatra is a result of the current COVID-19 situation that completely shut down travel services in March and April and still has travel restrictions applied for individuals to prevent the spread of the novel Coronavirus disease.
If Yatra is able to close at $1 or more for minimum of ten consecutive business days before 25th January 2021 (180 days warning period), the company will be considered compliant with the minimum bid price requirement, and the shares will continue to be eligible for listing on the NASDAQ.
However, if the company fails to do so, there is no guarantee if the company would be considered for an additional 180 day compliance period.