Shares of low-cost airline SpiceJet have hit a seven-month high on September 13 on strong trading volumes, rising by over 10 percent as news flow in the company continues to remain active.
In the past one month, the shares of SpiceJet have risen by as much as 30 percent.
The airline has moved the Supreme Court on September 12, challenging a Delhi High Court order by a single-judge bench, dated August 14, that had grounded three aircraft engines for defaulting on payment to lessors.
Aside of that, on September 10, the airline has finalised a debt restructuring deal with Carlyle Aviation to write off lease arrears. As part of the deal, Carlyle also invested $20 million in SpiceXpress, converting lease arrear into compulsorily convertible debentures.
Carlyle also turned $30 million of debt that SpiceJet owed into equity at Rs 100 per share.
The airline on September 6 had allayed concerns over payment obligations to Delhi Airport operator (DIAL), stating that it continues to operate flights normally, and its payment obligations to DIAL are being fulfilled as per schedule.
In an investor presentation shared with stock exchanges earlier in September, the airline had shared that the total operational fleet count stands at 28 aircraft, and it is looking to unground an equal number of planes.
News agency PTI has reported citing sources that chairman Ajay Singh is reportedly considering offloading more than 10 percent of his own stake in the airline to turn around SpiceJet, and a funding round is expected to close by the end of September. Moneycontrol has not been able to independently verify this development.
The airline is also looking to ramp up its fleet by leasing 10 new aircraft, sources aware of expansion plans told Moneycontrol on condition of anonymity. SpiceJet is looking to deploy its 10 new leased Boeing 737 aircraft on 60 popular and underserved destinations, according to sources. The airline is holding investor roadshows in Mumbai, Singapore and Hong Kong to generate interest for its upcoming qualified institutional placements (QIPs) in a bid to raise around Rs 3,000 crore.
In July, the board of the airline had approved the fund raise plan of up to Rs 3,000 crore.
The budget carrier had in August said that it will put 150 cabin crew members on furlough for three months, given the lean travel season and the reduced fleet size.
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