SpiceJet shares jump 7% on fresh capital infusion of Rs 294 crore by promoter group

Shares of SpiceJet Ltd saw a sharp uptick in Monday's trade after the budget carrier said its founder and promoter, Ajay Singh, through M/s Spice Healthcare Pvt Ltd (a Promoter Group Company), will infuse Rs 294.09 crore via the conversion of 13,14,08,514 warrants into an equivalent number of equity shares (13.14 crore equity shares).

"This strategic move will increase the consolidated shareholding of the Promoter Group in SpiceJet from the current 29.11 per cent to 33.47 per cent. Further, Ajay Singh, Promoter of the Company, is disposing of up to 3.15 crore equity shares of the company and utilise the proceeds to enable Spice Healthcare Pvt Ltd to partially fund the balance of 75 per cent of the amount at the time of allotment of the equity shares pursuant to exercise of option to convert said warrants," the airline stated in a BSE filing.

"The infusion underscores the Promoter Group's continued confidence in SpiceJet's long‐term growth potential and strategic direction. A meeting of the Board/Board Committee of the company will be held shortly, on or before March 18, 2025, to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option," SpiceJet also said.

Ajay Singh, Chairman and Managing Director at SpiceJet, said, "This fresh infusion reaffirms our unwavering commitment to the airline and its bright future. This investment will further strengthen our financial position and drive growth."

On the stock-specific front, SpiceJet climbed 6.86 per cent to hit a high of Rs 48.60. The scrip saw high trading volume on BSE today as around 3.42 crore shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 1.24 crore shares. Turnover on the counter came at Rs 155.52 crore, commanding a market capitalisation (m-cap) of Rs 6,111.08 crore.

Technically, the scrip traded higher than the 10-day, 20-day and 30-day simple moving averages (SMAs) but lower than the 5-day, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 51.26. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a negative price-to-equity (P/E) ratio of 41.46 against a price-to-book (P/B) value of 144.48. Earnings per share (EPS) stood at (-)1.15 with a return on equity (RoE) of (-)350.81.