Multibagger airline stock below Rs 80 surged 7 per cent as the company allocated 4,63,00,000 shares worth Rs 231,50,00,000 to FIIs
The stock gave multibagger returns of 110 per cent in just 6 months whereas BSE Small-Cap Index is up by 27 per cent.
Today, shares of SpiceJet Ltd surged 7.65 per cent to an intraday high of Rs 70.60 per share from its previous closing of Rs 65.58 per share. The stock’s 52-week high is Rs 77.50 and its 52-week low is Rs 22.65. The stock gave multibagger returns of 110 per cent in just 6 months whereas BSE Small-Cap Index is up by 27 per cent. The company has a market cap of Rs 4,646 crore.
The sudden rise in the stock price was due to the company having raised an additional Rs 316 crore, bringing the total investments raised to Rs 1,060 crore under its preferential issue. The combined sum reflects strong investor confidence in SpiceJet's future and unlocks exciting opportunities for the company.
The Preferential Allotment Committee of SpiceJet’s Board of Directors convened on February 21, 2024, approved the allotment of 4.01 Crore equity shares on a preferential basis to two investors, including Aries Opportunities Fund Limited. Additionally, the Committee sanctioned the allotment of 2.31 Crore warrants, offering the option to apply for and be allotted an equivalent number of equity shares, to four investors, including Elara India Opportunities Fund Limited.
FIIs, Aries Opportunities Fund Limited was allocated 4,00,00,000 war and Elara India Opportunities Fund Limited was allocated 63,00,000 shares worth Rs 231,50,00,000.
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Ajay Singh of SpiceJet and Busy Bee Airways have teamed up to bid for GoFirst, aiming to reshape the Indian aviation landscape. SpiceJet will act as the operating partner, leveraging its expertise to improve cost, revenue, and market share for both airlines. This strategic move comes as SpiceJet undergoes a financial revival, raising capital and expanding operations, including Haj flights. The NCLT's dismissal of an insolvency petition further strengthens SpiceJet's position.
SpiceJet is India’s favourite airline that has made flying affordable for more Indians than ever before. SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s, Q-400s & freighters and is the country’s largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline’s fleet offers SpiceMax, the most spacious economy-class seating in India. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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