SpiceJet rallies 15% in 2 days, hits over 7-month high on heavy volumes: SpiceJet share price,
Source: Business Standard
Spicejet(Photo: Shutterstock)
Shares of SpiceJet hit an over seven-month high of Rs 72.25, as they rallied 9 per cent on the BSE in Friday’s intra-day trade. Shares of the airline have surged 15 per cent in the past two days amid heavy volumes on expectation of healthy growth. The stock of the low-cost airline is trading at its highest level since February 7, 2024.
At 10:25 AM, SpiceJet was trading 7 per cent higher at Rs 70.92, compared to the 0.21 per cent decline in the BSE Sensex. The counter has seen huge trading volumes, with 11.23 million shares changing hands on the BSE so far. On an average, less than seven million shares were traded on the exchange, data shows.
On July 23, SpiceJet’s board approved a fundraise of up to Rs 3,000 crore through the issue of equity shares or any other eligible securities to qualified institutional buyers by way of qualified institutional placement (QIP). The airline is in discussions with potential investors, with meetings with them being held in India and abroad.
According to a PTI report, SpiceJet promoter and Chairman Ajay Singh may offload more than 10 per cent stake in the struggling carrier as a part of the latest funding round that is expected to close by the end of September. The budget carrier–which is grappling with multiple woes, including financial challenges, legal battles and grounding of aircraft–is looking to raise money that will help it meet various obligations, PTI reported, citing sources.
Meanwhile last week, SpiceJet in an investor presentation, said that the company is positioned for promising growth. It added that the Indian aviation industry is poised for significant growth backed by demand-supply mismatch.
SpiceJet sees a substantial increase in fleet count, expected with the ungrounding of its 28 aircraft. The company plans to unground three B737-700s, two B737-700 (BDSF)s, four B737-800s, three B737-900s, three B737-8s and B737-Max, and 13 DHC-8-Q400s. However, the LCC did not disclose when it expects to restart operations with these planes.
Meanwhile, SpiceJet moved the Supreme Court against the Delhi High Court order that directed the grounding and return of three engines leased from Team France 01 SAS and Sunbird France 02 SAS.
The division bench of the Delhi High Court had rejected the cash-strapped airline’s plea, saying it did not wish to interfere with the single-judge order of the same court and asked the parties to settle the dispute.
First Published: Sep 13 2024 | 10:54 AM IST
