Spicejet share price: SpiceJet shares fly high after Rs 3000 crore QIP oversubscribed
Source: Business Standard
SpiceJet shares surged over 8 per cent and registered an intraday high of Rs 74.7 per share. The stock surged after reports said the airline has received a good response for its Rs 3,000 crore-worth sale of shares to qualified institutional buyers.
At around 9:18 AM, shares of SpiceJet were up 3.44 per cent at Rs 71.48 per share. In comparison, the BSE Sensex traded 584.12 points higher at 83,532.35, around the same time.
As per a PTI report, the qualified institutional placement has been oversubscribed, with participation from various investors, including family offices and institutional funds.
Some of the investors include the family offices of Madhu Kela, Akash Bhansali, Sanjay Dangi, and Rohit Kothari.
“Due to our financial constraints, our company has not been able to fulfill the statutory liabilities accruing on us on a month to month basis,” the airline said in the preliminary placement document related to raising Rs 3,000 crore.
The carrier’s statutory dues totalled Rs 601.5 crore as on September 15 and net proceeds from the placement will also be utilised towards clearing the dues.
Of the total amount, Rs 297.5 crore is towards the deposit of Tax Deducted at Source (TDS), Rs 156.4 crore is related to the deposit of employees’ provident fund, and Rs 145.1 crore pertains to Goods and Services Tax (GST).
SpiceJet had set a floor price of Rs 64.79 per share for the sale of securities to qualified institutional buyers through which the budget carrier aims to raise up to Rs 3,000 crore.
Last week, shareholders approved a proposal to raise up to Rs 3,000 crore.
According to the preliminary placement document, a copy of which has been submitted to the BSE, the floor price has been set at Rs 64.79 per share.
“Our company may offer a discount of not more than 5 per cent on the floor price in accordance with the approval of the shareholders by way of a special resolution pursuant to the postal ballot dated on September 13, 2024, and in terms of Regulation 176(1) of the SEBI ICDR Regulations,” it said.
In the past one year, SpiceJet shares have gained 81.6 against BSE Sensex’s rise of 22.7 per cent.
First Published: Sep 19 2024 | 9:46 AM IST
