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SpiceJet soars 10% as company successfully raises Rs 3,000 crore via QIP: Spicejet share price
Source: Business Standard
SpiceJet informed that it has allotted shares to qualified institutional buyers
SpiceJet share price surged 10 per cent on Monday (September 23), registering an intraday high of Rs 72.8 per share, on the BSE. The airline company’s stock soared after it raised Rs 3,000 crore through qualified institutional placement (QIP) process.
At around 11:15 AM, shares of SpiceJet were up 6.41 per cent at Rs 70.4 per share on the BSE. By comparison, the BSE Sensex traded 187.83 points higher at 84,732.14 around the same time.
Cash-strapped airline SpiceJet raised Rs 3,000 crore through a QIP, which opened on September 16 and closed on September 18. As per the airline, it received an overwhelming response from qualified investors and got significantly oversubscribed, demonstrating strong confidence in the company’s growth prospects.
In addition to the Rs 3,000 crore funding, SpiceJet was supposed to receive an additional Rs 736 crore from the previous funding round, further boosting its financial stability and growth plans.
The newly raised capital will be used to operationalise grounded aircraft, acquire new planes, invest in technology, and expand into new markets, the airline said.
Through a filing on Saturday, September 21, SpiceJet informed that it has allotted shares to qualified institutional buyers.
“We wish to inform you that, in respect of the issue which opened on September 16, 2024, and closed on September 20, 2024, the fundraising committee at its meeting approved the issue and allotment of 48,70,12,986 equity shares to eligible qualified institutional buyers,” the filing read.
The shares were allotted at Rs 61.6 per share, which includes a premium of Rs 51.6 and a discount of Rs 3.19 per share to the floor price. The total amount raised from the issue will be Rs 2,999.99 crore.
After the allotment, the paid-up equity share capital of the company increased from Rs 7,94,67,27,170 consisting of 79,46,72,717 shares to Rs 12,81,68,57,030 consisting of 1,28,16,85,703 shares.
In the past one year, shares of SpiceJet have gained 84 per cent against BSE Sensex’s rise of 28 per cent.
First Published: Sep 23 2024 | 11:57 AM IST
