FIIs bought 4,62,33,331 shares of this multibagger airline stock below Rs 65; Company saved total of Rs 685 crore from airline and added three airframes & engine to its fleet!

The stock gave multibagger returns of 189 per cent from its 52-week low of Rs 22.65 per share whereas BSE Small-Cap Index is up by 59 per cent in the same period.

SpiceJet Ltd has achieved a major win by resolving a USD 49.8 million dispute with Echelon Ireland. This settlement saves the airline significant costs and strengthens its financial position. Additionally, SpiceJet will acquire two new airframes as part of the deal.

In another positive development, SpiceJet settled a dispute with aircraft lessor Cross Ocean Partners for USD 11.2 million. This agreement also benefits SpiceJet through cost savings and the acquisition of an airframe and engine. Both parties have shown their commitment to finding solutions through negotiation.

Earlier, SpiceJet successfully resolved a long-standing dispute with Celestial Aviation for USD 29.9 million, avoiding potential litigation costs. This settlement is expected to save SpiceJet an additional Rs 235 crore.

SpiceJet has achieved a significant milestone by resolving a third major dispute, adding to the recent fundraising success. These settlements have collectively saved the airline Rs 685 Crore, strengthening its financial health and balance sheet. Furthermore, SpiceJet has secured three additional airframes and an engine, bolstering its operational capabilities.

SpiceJet secured a significant investment of Rs 1,060 crore through a preferential issue, with participation from investors like Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited. This strategic move, approved by the Board of Directors on February 21, 2024, involved allocating 4.01 crore equity shares and 2.31 crore warrants to investors, providing the airline with additional capital to address past liabilities.

Today, shares of SpiceJet Ltd surged 5.62 per cent to an intraday high of Rs 65.40 per share from its previous closing of Rs 61.92 per share. 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 189 per cent from its 52-week low of Rs 22.65 per share whereas BSE Small-Cap Index is up by 59 per cent in the same period. The company has a market cap of over Rs 4,300 crore. In February 2024, FIIs bought 4,62,33,331 shares and increased their stake to 6.21 per cent compared to December 2023.

Additionally, In a bid to reshape the Indian aviation industry, SpiceJet's Ajay Singh and Busy Bee Airways’ Nishant Pitti (and also promoter of Easy Trip Planners Ltd) have partnered to acquire GoFirst, with SpiceJet leveraging its expertise to improve cost, revenue, and market share for both airlines. This strategic move coincides with SpiceJet's financial recovery, which includes capital raising, operational expansion like Haj flights, and a strengthened position following the NCLT's dismissal of an insolvency petition. Investors should keep an eye on this small-cap stock.

Budget 2024 for Aviation Sector, 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”.

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