SpiceJet plans to raise funds, stock zooms 4%

Share of SpiceJet rose 4 per cent to hit an intraday high of  Rs 82.60 on BSE today after the company informed that it is going to consider fundraising.
 
The company said that the Board of Directors of the company in its meeting scheduled on Wednesday, the 30th day of June, 2021 will discuss and consider, inter alia, options for raising fresh capital through the issue of equity shares/debt instruments on preferential/qualified institutions placement basis, in accordance with the relevant provisions of applicable law.
 
It is subject to the approval of the shareholders of the company and receipt of applicable regulatory approvals, as may be required.
 
The stock ended 3.45 per cent higher at Rs 82.40 against the previous close of Rs 79.65. Market cap of the firm rose to Rs 4,943.12 crore on BSE.
 
It has gained 60 per cent in the last one year. The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.
 
In March 2021, SpiceJet signed a Memorandum of Understanding (MoU) with Avenue Capital Group, New York for a strategic alliance in respect of the financing, acquisition and sale, and lease-back of 50 new planes to be ordered by the airline.
 
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We are delighted to enter into this strategic alliance with Avenue Capital Group and we look forward to closely working with them. This alliance will ensure a seamless induction of the planes in our fleet and help us plan better for the long term.”
 
Recently, the domestic air carrier announced its ‘Mega Monsoons Sale’, under which domestic flight tickets can be booked starting at an all-inclusive fare of Rs 999.
 
While the domestic air traffic in the country had touched around 3 lakh passengers per day by February-end, it was at around 70,000 passengers in the first week of June.
 
Scheduled domestic flight services were suspended in India from March 25 to May 24 last year due to the lockdown. The domestic flights resumed operations from May 25, 2020, but in a curtailed manner.