Small Cap Airline Co To Consider Fundraising, Shares Rally 134% In 6-Months

Small cap airline company SpiceJet on Wednesday informed via its BSE filing that it will hold Annual General Meeting (AGM) on January 10, 2024 to consider and adopt the audited financial statements for the financial year ended March 31, 2023. The company will also consider issue and allotment of equity shares on preferential basis.

According to the BSE filing of the company, "The Board to create, offer, issue and allot up to 31,83,00,000 equity shares of the face value of Rs.10 each of an aggregate nominal amount of up to Rs.3,18,30,00,000 at an issue price of Rs 50 per share on preferential basis, in one or more tranches."

Earlier on Tuesday, SpiceJet expressed interest to acquire Go First and seeks to submit its offer after carrying out due diligence of the bankrupt carrier. Go First, which stopped flying since May 3 due to financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process. In its BSE filing, SpiceJet stated, "has expressed interest with the resolution professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet".

In the upcoming AGM, SpiceJet will also take up re-appointment of Mrs Shiwani Singh as a Director liable to retire by rotation. To appoint a director in place of Mrs. Shiwani Singh (DIN: 05229788), who retires by rotation and being eligible, seeks re-appointment.

SpiceJet Stock Performance & Return: Last trading price of SpiceJet share BSE is Rs 64.17 per share with intraday fall of 2.89%. Its 52-week high price is Rs 69.20 per share and 52-week low price is Rs 22.65 per share, respectively. The company has a market capitalisation of Rs 4,390.13 crore. SpiceJet shares soared 11.59%, gained 47% in just last 2-weeks, surged 68% in last 1-month, and offered return of 133% in last 6-months. In last 1-year, SpiceJet stock gained 56%, fell 37% in last 3-years, and declined 24% in last 5-years.

Spicejet Financials: The airline company December 12 announced its consolidated net loss for the quarter ended September 2023 narrowed to Rs 449 crore as against Rs 830 crore in the year-ago period. SpiceJet declared a profit of Rs 198 crore in the preceding June quarter. Meanwhile, consolidated revenue from operations declined 27% Year-on-year to Rs 1429 crore.

"The July-September quarter has historically been a challenging period for the aviation industry. This year, the challenges were further compounded by elevated fuel prices, impacting operational costs. SpiceJet, however, has been proactive in implementing cost-saving measures and remains focused on adapting to the dynamic market conditions," CMD Ajay Singh said.

About SpiceJet: SpiceJet is India's low-cost airline, connecting the remotest corners of the country. It operates the maximum number of UDAN flights in India. It operates about 250 daily flights to 48 destinations within India and to international destinations. Its fleet is an apt mix of large, medium and small metal birds that includes Boeing 737 Max, Boeing 700 and Q400s, according to its official website.

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