FIIs increase stake in Q1: Multibagger airline stock under Rs 75 surges 8.9 per cent with 2 times spurt in volume; Here’s why!
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 34 per share.
Today, shares of SpiceJet Ltd gained 8.90 per cent to Rs 72.25 per share from its previous closing of Rs 66.35 per share with a spurt in volume by more than 2 times on BSE. The stock’s 52-week high is Rs 77.50 and its 52-week low is Rs 34. Today, a total of 1.25 crore shares changed hands on BSE.
SpiceJet Ltd has successfully negotiated a significant debt relief and restructuring agreement with Carlyle Aviation. As part of the settlement, Carlyle Aviation will write off USD 40.17 million in lease arrears owed by SpiceJet. Additionally, Carlyle Aviation will convert USD 30 million of these arrears into SpiceJet equity at INR 100 per share, substantially increasing its stake in the airline. This strategic investment demonstrates Carlyle Aviation's confidence in SpiceJet's future and its growth.
Furthermore, the agreement includes a provision for Carlyle Aviation to convert USD 20 million in lease arrears into compulsorily convertible debentures (CCDs) of SpiceXpress & Logistics Private Limited. This strategic investment in SpiceJet's subsidiary will provide additional financial support and strengthen its position in the logistics market. The overall restructuring agreement is expected to bolster SpiceJet's financial position, accelerate its growth plans, and enhance its competitiveness in the Indian aviation market.
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About SpiceJet Ltd
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 and is one of the country's largest regional players 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.
According to Quarterly Results, the company reported net sales of Rs 1,708 crore, operating profit of Rs 49 crore and net profit of Rs 158 crore in Q1FY25. In its annual results, the company reported net sales of Rs 7,085 crore, an operating loss of Rs 644 and a net loss of Rs 424 crore in FY24.
The company has a market cap of over Rs 5,700 crore. According to the shareholding pattern of June 2024, FIIs bought 8,85,885 shares and increased their stake to 1.81 per cent compared to 1.73 per cent in March 2024. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 34 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.