Multibagger penny stock below Rs 70 and FIIs & DIIs increase stake: This airline stock gained 6 per cent as it completes first tranche of capital infusion aggregating to Rs 744 crore!

The stock gave multibagger returns of over 120 per cent in just 6 months whereas BSE Small-Cap Index is up by 28 per cent.

SpiceJet Ltd has approved the allocation of shares and warrants amounting to Rs 744 crore on a preferential basis, with 5.55 crore equity shares allotted to 54 subscribers and 9.33 crore warrants granted to Elara India Opportunities Fund Limited and Silver Stallion Limited, offering the option to acquire an equivalent number of equity shares being the first tranche of capital infusion.

The company proposes to issue two tranches of equity instruments on a preferential basis to non-promoter category persons: (a) 5,55,00,000 equity shares priced at Rs.50 each, and (b) 9,33,00,000 warrants granting the right to purchase an equivalent number of equity shares at Rs.50 each.

The company is set to finalize another round of equity and warrants allotment from remaining subscribers but has sought an extension from the regulatory authority to accommodate the process due to limited banking days caused by extended weekends. This extension was requested following shareholder approval on January 10, 2024.

SpiceJet has received approval of over Rs 2,240 crore ($270 million) in a transformative capital infusion from investors, propelling its expansion and strengthening its finances out of which Rs 744 crore is raised. Key players like Elara India and Carlyle Aviation have invested, demonstrating confidence in SpiceJet's future. This funding will fuel fleet growth, infrastructure upgrades, and operational improvements, solidifying SpiceJet's position as a reliable carrier and ushering in a new era of growth.

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 4,400 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.

Today, shares of SpiceJet Ltd gained 6.2 per cent to an intraday high of Rs 65.40 per share from its previous closing of Rs 61.58. The stock gave multibagger returns of over 120 per cent in just 6 months whereas BSE Small-Cap Index is up by 28 per cent. Investors should keep an eye on this small-cap stock.

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