SpiceJet shares locked in 20% upper circuit limit on fundraising plans

In an exchange filing on Wednesday, the company announced that its Board of Directors is scheduled to meet on December 11, 2023. The company said that the agenda of the meeting is to discuss and consider, inter alia, options for raising fresh capital through the issue of equity shares and/or convertible securities on a preferential basis.

SpiceJet also said that the proposals considered will be subjected to the approval of the shareholders of the company and the receipt of applicable regulatory approval. This announcement comes amid reports that the airline is seeking to raise about $100 million, with promoter Ajay Singh reportedly in talks with global credit funds.

Also Read: SpiceJet looking to raise $100mn, Ajay Singh in talks with credit funds: Report

In a big relief, the National Company Law Tribunal (NCLT) on Monday (December 04) dismissed an insolvency petition by aircraft lessor Willis Lease Finance Corporation, which is claiming dues.

However, apart from Willis Lease, SpiceJet is also facing insolvency petitions from three other aircraft lessors—Aircastle Ireland Ltd., Wilmington, and Celestial Aviation. NCLT has also issued a notice to SpiceJet on a similar plea filed by business consultancy Raymach Technologies Pvt. Ltd., which recently moved the tribunal against the airline.

Also Read: Domestic air passenger traffic rises 11% to 1.26 crore in October

In August, SpiceJet allocated more than 48 million shares to nine aircraft lessors to clear outstanding dues totaling ₹2.31 billion (about $28 million).

Meanwhile, in mid-October, the stock experienced significant volatility in response to reports suggesting that Rakesh Gangwal, the co-founder and former promoter of IndiGo, was in advanced talks to acquire a substantial stake in the financially distressed SpiceJet. However, a banker close to Gangwal dismissed the reports, stating that Rakesh Gangwal had no intention of investing in SpiceJet.

Also Read: SpiceJet shares plummet 11% as report says Rakesh Gangwal doesn’t wish to invest in airline

In the current year, the company’s shares have generated a return of 34.42%, bringing an end to three consecutive years of weak performance. According to Trendlyne shareholding data, the company’s promoters decreased their stake to 56.5% in Q2FY24 from 59% in Q1FY24. 

Additionally, FIIs reduced their stake to 0.3%, while general shareholders increased their stake to 43.2% from 40.07% in Q1FY24.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 07 Dec 2023, 03:55 PM IST