SpiceJet share price flew high in August 23 trade amid the airline's Rs 3,000-crore fundraise plan by the end of next month.
The stock hit a day's high of Rs 67.8 on the National Stock Exchange (NSE), zooming 4.79 percent from its previous close. The counter has been rising for the last six days and has risen 21.02 percent in the period.
A total of over 62 lakh SpiceJet shares changed hands, generating a total turnover of Rs 41.46 crore in the early trade. The company has a market cap of Rs 5,368.97 crore.
Earlier this month, the company announced raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), which is expected to be completed by the end of September 2024.
This fresh infusion of funds will be pivotal in enabling the airline to expand and unground its fleet, enhance operational capabilities, settle liabilities and improve its overall market competitiveness. These funds will stabilise the overall operations and allow expansion, the company said.
The airline had a weak show in the June quarter on the back of reduced flight operations.
The company's consolidated net profit fell by 20 percent year-on-year (YoY) to Rs 158 crore in Q1FY25. Total income for Q1FY25 also saw an 8.3 percent YoY decrease, coming in at Rs 2,077.7 crore. However, on a sequential basis, net profit after tax increased by 24 percent from Rs 127 crore in the preceding March quarter.
SpiceJet has been struggling financially since the past few quarters due to legal disputes involving outstanding debts to lenders, aircraft and engine lessors.
Buying was seen in other airline scrips as well on August 23 with IndiGo share price quoting at Rs 4,593 apiece on the NSE, up 2.45 percent. The uptrend in the counter was also witnessed after global brokerage Jefferies upgraded its rating on the aviation stock to ‘BUY’ raising its target price to Rs 5,225 from an earlier recommendation of Rs 4,400.
Jet Airways too rose nearly 3.5 percent amid broader rally in the sector after the central government said it is working to extend the regional connectivity scheme Udan for another ten years.
Udan (Ude Desh ka Aam Nagrik) scheme was launched on October 21, 2016, to push regional air connectivity and make air travel affordable for the masses.
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