Airline Stock Under Rs 60 In Focus As It Announces Successful Fund Infusion of Rs 294.09 Crore by Promoter Group, Raising Stake to 33.47 Per Cent
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.
On Wednesday, shares of SPICEJET LTD surged 3.34 per cent to Rs 50.55 per share from its previous closing of Rs 48.22 per share. The stock’s 52-week high is Rs 79.90 per share and its 52-week low is Rs 39.91 per share.
SpiceJet has successfully secured Rs 294.09 crore in funding from its promoter, Ajay Singh, via Spice Healthcare Private Limited. This capital injection, achieved through the conversion of 13.14 crore warrants into equity shares, has increased the Promoter Group's stake in the airline from 29.11 per cent to 33.47 per cent. This move is a significant step in SpiceJet's ongoing turnaround strategy, providing crucial financial support and demonstrating the promoter's commitment to the airline's future.
This infusion finalizes the promised Rs 500 crore equity investment by Ajay Singh, bolstering SpiceJet's financial stability. The completion of this funding round highlights the Promoter Group's strong belief in the airline's long-term prospects and strategic direction, particularly during challenging times. This financial reinforcement is intended to strengthen SpiceJet's position in the competitive aviation market.
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.
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Despite a 35 per cent year-over-year (YoY) drop in sales to Rs 1,237.0 crore, compared to Rs 1,914.4 crore in Q3 FY23e, the company demonstrated a significant financial recovery; EBITDA losses narrowed by 21 per cent YoY to Rs -188 crore, and net profit turned positive at Rs 25 crore, a 108 per cent YoY improvement. This positive shift, alongside a 104 per cent increase in EPS to Rs 0.19, was largely attributed to a 72.3 per cent surge in other income to Rs 417.1 crore, which compensated for the operational revenue decline.
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 6,300 crore.
Disclaimer: The article is for informational purposes only and not investment advice.