SpiceJet shares jump 6%; airline completes first tranche of fundraising of Rs 744 crore

Shares of SpiceJet surged during the trading session on Monday after the budget-carrier completed the first tranche of capital infusion aggregating to Rs 744 crore to 56 subscribers/investors. The company informed about the same through an exchange filing on Friday.

The company board SpiceJet, at its meeting held on January 25, 2024, has considered and approved allotment of first tranche of 5,55,00,000 equity shares of the face value of Rs 10 each at an issue price of Rs 50 each on preferential basis to persons under non-promoter category, said the exchange filing.

All Trade Consultants, Amar Alliance Securities, Glaxo Finance, LKP Finance, Nexus Global Opportunities, Prabhudas Lilladher Advisory Services, Resonance Opportunities Fund and Vikasa India EIF I Fund are some of the allottees of the shares in this tranche.

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The company board also considered and approved allotment of first tranche of 9,33,00,000 warrants, having option to apply for and be allotted equivalent number of equity shares of the face value of Rs 10 each at an issue price of Rs 50 each on preferential basis to Elara India Opportunities Fund and Silver Stallion under non-promoter category, it added.

Following the announcement, shares of SpiceJet surged about 6.2 per cent to Rs 65.40 on Monday, commanding a total market capitalization of more than Rs 4,400 crore. The scrip had settled at Rs 61.58 in the previous trading session on Thursday. The stock has rallied 190 per cent from its 52-week low at Rs 22.65 hit in May 2023.

"The company board has also sought additional time from competent authority to allot further equity shares and warrants under the ongoing preferential issue as approved by the shareholders of the company on January 10, 2024," said the exchange filing.

“We are pleased with the completion of the first tranche of our preferential allotment, which demonstrates the confidence of investors in SpiceJet’s growth prospects and we remain committed to completing the further allotment process progressively," said Ajay Singh, Chairman and Managing Director of SpiceJet.

SpiceJet is an Indian budget airline, which operates a fleet of Boeing 737s, Q‐400s & freighters and is a leading national regional player operating multiple daily flights under UDAN or the regional connectivity scheme. The majority of the airline’s fleet offers SpiceMax, an economy class seating offering.