December 17, 2024

SpiceJet stock jumps 9% on plans to induct 10 planes by November-end

TheSpuzz Desk05 mins
SpiceJet stock jumps 9% on plans to induct 10 planes by November-end

Source: Business Standard

Spicejet (Photo: Wikipedia)

3 min read Last Updated : Oct 08 2024 | 12:34 PM IST

SpiceJet shares climbed 9.5 per cent to Rs 63 on the BSE in Tuesday’s intraday trade after the company said it will significantly expand its fleet by the end of November with the induction of ten aircraft. This marks a major step in the embattled airline’s growth plans.

Seven of these aircraft will be acquired on lease, while three previously grounded SpiceJet planes are being reintroduced into service, the company said.

At 11:23 AM, SpiceJet was quoting 9 per cent higher at Rs 62.77, as compared to the 0.52 per cent rise in the BSE Sensex. The counter has seen huge trading volumes, with a combined 14.79 million equity shares having changed hands on the BSE. The stock of the airline company had hit a 52-week high of Rs 79.90 on September 16, 2024.

It had hit a record peak of Rs 156.90 on June 3, 2019.

Click here to connect with us on WhatsApp

 

SpiceJet, in an exchange filing, said the airline has already signed agreements for the leased aircraft, with the full induction of all the seven planes expected by November 15. Two of these leased aircraft have already arrived in India and are scheduled for immediate induction, it added.

SpiceJet will also operationalise its grounded planes in phases, with the first three set to re‐enter service before the end of November.

Last month, SpiceJet had raised Rs 3,000 crore via qualified institutional placement (QIP). The company allotted 487 million equity shares to eligible qualified institutional buyers at an issue price of Rs 61.60 per equity share.

The QIP had witnessed an overwhelming response from investors, and it attracted a diverse group of top‐tier institutional names, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity.

In addition to the QIP, the airline is set to receive an additional Rs 736 crore from a previous funding round, which is further expected to bolster its financial stability and growth trajectory.


The fresh capital raised will play a key role in ungrounding SpiceJet’s existing aircraft, acquiring new planes, investing in technology, and expanding into new markets. The airline remains focused on restoring its reputation for efficiency and reliability, ensuring passengers benefit from improved connectivity and access to a wider range of travel options, the company said.

Further, on September 24, SpiceJet announced it had resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement.

ELFC had previously claimed $16.7 million, and the settlement has been reached for an undisclosed amount, which is lower than the initial claim. “This resolution marks another significant step towards strengthening SpiceJet’s financial health,” the company said.


Meanwhile, in another development, Plutus Wealth Management, on October 1, raised its holding in SpiceJet by acquiring additional shares for Rs 50 crore through an open market transaction. According to the bulk deal data available on the BSE, Plutus Wealth Management purchased 7.5 million shares of SpiceJet, at Rs 66.70 per share.


Then on September 30, Plutus bought 8.5 million shares of the company for Rs 51 crore, bulk deal data on the BSE showed.

First Published: Oct 08 2024 | 12:30 PM IST



Read Full Article

Leave a Reply

Your email address will not be published. Required fields are marked *

Related News