Multibagger airline stock below Rs 80 & FIIs bought 2,84,817: Ajay Singh & Busy Bee Airways Private Limited submit bid for GoFirst – know more here!
The stock gave multibagger returns of 120 per cent in just 6 months whereas BSE Small-Cap Index is up by 30 per cent.
Ajay Singh, Chairman, and Managing Director of SpiceJet, Ltd and Busy Bee Airways Private Limited, have jointly submitted a bid for GoFirst. The bid, submitted on Friday (February 16, 2024), marks a significant strategic move that has the potential to reshape the landscape of the Indian aviation sector and position SpiceJet for substantial growth in the industry. The bid has been submitted by Ajay Singh, in his capacity, along with Busy Bee Airways Private Limited.
SpiceJet's role as the operating partner for the new airline involves providing essential staff, services, and industry expertise. This collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth, and a strengthened market position within the Indian aviation industry. Pran Sathiadasan is the Director of Busy Bee Airways Private Limited and he is also the Director of Commercial Operations, South East Asia at flydubai which makes a strong support too.
For SpiceJet, serving as the service provider presents significant opportunities for revenue expansion. By leveraging its established infrastructure and operational capabilities, SpiceJet can optimize resource allocation and achieve cost efficiencies across various functions, including maintenance, ground handling, and engineering.
Furthermore, coordinated route planning initiatives are poised to enhance passenger traffic and drive ticket sales for both airlines. By strategically aligning their flight schedules and destinations, SpiceJet and the new airline can capture a larger share of the market and cater to diverse passenger needs effectively.
SpiceJet is currently in the midst of a revival plan, having completed the first tranche of capital infusion amounting to Rs 744 Crore, with additional subscriptions pending regulatory approval. The company has also initiated the process to raise an additional Rs 1,000 crore. SpiceJet already holds valid shareholder approval to raise up to Rs 2,500 crore through QIP, eliminating the need for further shareholder approval.
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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 4,800 crore. In January 2024, FIIs bought 2,84,817 shares and increased their stake to 0.84 per cent compared to 0.33 per cent in December 2023.
Additionally, SpiceJet expands its Haj operations to seven Indian cities - Srinagar, Gaya, Guwahati, Bhopal, Indore, Aurangabad, and Vijayawada - aiming for even higher revenue in 2024. Building on its successful track record (INR 337 crore earned last year), the airline commits to a seamless travel experience for pilgrims with dedicated wide-body aircraft and enhanced services, especially for Srinagar flights. Operations kick off on May 9, 2023 with flights to Medina.
Furthermore, 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.
Today, shares of SpiceJet Ltd plunged 0.35 per cent to Rs 70.56 per share with an intraday high of Rs 71.70 and an intraday low of Rs 68.26. 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 120 per cent in just 6 months whereas BSE Small-Cap Index is up by 30 per cent. 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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