Multibagger Airline Stock - SpiceJet Finalises Settlement with Engine Lease Finance Corporation to Resolve USD 16.7 Million Liabilities
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 34 per share.
SpiceJet Ltd has successfully resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC, which had previously claimed USD 16.7 million, has agreed to settle for an undisclosed amount, which is lower than the initial claim.
The representatives of both parties will now formalise the settlement agreement, to withdraw all ongoing litigation and end disputes between them. This settlement marks a significant step in SpiceJet’s ongoing efforts to streamline its operations and focus on future growth.
SpiceJet has secured a significant financial boost through its recently concluded Qualified Institutional Placement (QIP), raising a substantial Rs 3000 crore. The QIP, which was oversubscribed by investors, attracted a diverse range of top-tier financial institutions, including Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Limited ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd, Societe Generale ODI, Authum Investment and Infrastructure Limited, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat Amrikaal Fund, 360 ONE Equal Opportunity Fund, and The Jupiter Global Fund. This influx of capital will enable SpiceJet to accelerate its fleet expansion, enhance its network, and invest in technology to improve operational efficiency and passenger experience.
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The QIP's success is a testament to SpiceJet's resilience and strategic direction. With this additional funding, the airline is well-positioned to restore its reputation for reliability and efficiency, providing passengers with improved connectivity and a wider range of travel options. The funds raised will be used to unground aircraft, acquire new planes, and expand into new markets, solidifying SpiceJet's position as a leading player in the Indian aviation sector.
Today, shares of SpiceJet Ltd plunged 1.32 per cent to Rs 69.35 per share from its previous closing of Rs 70.28 with an intraday high of Rs 70.40 and an intraday low of Rs 68.75. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 34 per share.
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 5,500 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. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.