Shares of SpiceJet surged nearly 5 percent in morning trading on July 19 after the low-cost airline announced a board meeting scheduled for July 23 to discuss raising fresh capital through qualified institutional placement, according to the company’s announcement.
In an exchange filing, SpiceJet announced that its board of directors will consider on Tuesday, July 23, to discuss and approve the raising of fresh capital. The capital will be raised through the issuance of eligible securities to qualified institutional buyers via a qualified institutional placement, and potentially other methods, in accordance with relevant laws.
The company announced that the fundraise will require approval from its shareholders and other relevant regulatory and contractual consents.
Earlier this week, Ajay Singh, the chairman and managing director of the airline, announced that the company is seeking opportunities to raise new funds to support its growth plans and capitalize on the increasing demand in the Indian aviation market.
The budget carrier announced its Q3 and Q4 results for the financial year 2023-24 earlier this week. The airline returned to profitability in the fourth quarter after posting a loss in the third quarter.
The Gurugram-based airline reported a net loss of ₹300 crore for the September quarter of FY24 and a net profit of ₹119.6 crore for the January-March quarter of 2023-24.
In contrast, during 2022-23, the airline had reported a net profit of ₹110 crore for the September quarter of FY23 and a net loss of ₹62 crore for the January-March quarter.
For the January-March 2024 quarter, the total revenue from operations was ₹1,571.2 crore, down from ₹2,145 crore in the same quarter the previous year.
At 11:38 am, SpiceJet shares were trading nearly 2 percent higher at ₹56.34 on the BSE. Despite a 7 percent decline year-to-date, the stock has surged approximately 90 percent over the past year, significantly outperforming the benchmark Sensex’s 20 percent return during the same period.
