Multibagger penny stock below Rs 70: Airline stock hit 52-week high after big news in the Budget 2024 by Nirmala Sitharaman for aviation sector – know more here!

The stock gave multibagger returns of 133 per cent in just 6 months whereas BSE Small-Cap Index is up by 33 per cent.

Finance Minister Nirmala Sitharaman said; “The aviation sector has been galvanized in the past ten years. The number of airports has doubled to 149. The rollout of air connectivity to tier-two and tier-three cities under the UDAN scheme has been widespread. Five hundred and seventeen new routes are carrying 1.3 crore passengers. Indian carriers have proactively placed orders for over 1,000 new aircrafts. Expansion of existing airports and development of new airports will continue expeditiously”.

Today, one of the Top Gainers on BSE, shares of SpiceJet Ltd gained 13.4 per cent to an intraday high of Rs 72.50 per cent from its previous closing of Rs 63.94. The stock also made a fresh new 52-week high of Rs 72.50 per share.

Earlier, SpiceJet, the Indian low-cost carrier, received a much-needed boost as the National Company Law Tribunal (NCLT) dismissed an insolvency petition filed against it by aircraft lessor Wilmington Trust SP Services. This follows a similar ruling in December against another lessor, Willis Lease Finance Corporation.

Additionally, SpiceJet raised Rs 744 crore in the first tranche of a Rs 2,240 crore preferential capital infusion, allocating shares and warrants to investors like Elara India and Carlyle Aviation. The company seeks an extension to complete the remaining allotment due to limited banking days and anticipates this funding to bolster its expansion, enhance its finances, and solidify its position as a reliable carrier.

SpiceJet Ltd is principally engaged in the business of providing air transport services for the carriage of passengers and cargo. The company is the 2nd largest player in the domestic aviation industry with a market share of 13 per cent. The company has a market cap of over Rs 4,860 crore. In December 2023, FIIs increased their stake to 0.33 per cent and DIIs have increased their stake to 0.04 per cent from 0.29 per cent and 0.01 per cent respectively.

The stock gave multibagger returns of 133 per cent in just 6 months whereas BSE Small-Cap Index is up by 33 per cent. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.