Multibagger airline stock under Rs 80 in focus as Board concludes QIP of Rs 2,999,99,99,937.60; Check inside top 5 prominent investors participated

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 34 per share.

SpiceJet Limited recently concluded a successful Qualified Institutional Placement (QIP) to raise funds for its operations. The issue opened on September 16, 2024 and closed on September 20, 2024. During the QIP, the company issued and allotted 48,70,12,986 equity shares to eligible qualified institutional buyers at an issue price of Rs 61.60 per equity share. This represented a premium of Rs 51.60 per equity share, which included a discount of ₹3.19 per equity share (4.92% of the floor price) as per the SEBI ICDR Regulations.

The total amount raised through the QIP amounted to Rs 2,999,99,99,937.60. The allocation of shares was determined based on the formula prescribed under Regulation 176(1) of Chapter VI of the SEBI ICDR Regulations. The company also approved the placement document and the confirmation of allocation notes to be sent to eligible qualified institutional buyers.

Several prominent investors participated in the QIP, with Authum Investment and Infrastructure Limited, Discovery Global Opportunity (Mauritius) Ltd, Troo Capital Ltd, Societe Generale - ODI and Goldman Sachs (Singapore) PTE - ODI being the top five allottees. These investors acquired more than 5 per cent of the equity shares offered in the QIP, demonstrating significant interest in SpiceJet's growth prospects.

Authum Investment and Infrastructure Limited bought 4,54,45,933 shares or 9.33 per cent; Discovery Global Opportunity (Mauritius) Ltd bought 4,05,84,416 shares or 8.33 per cent; Troo Capital Ltd bought 3,24,67,532 shares or 6.67 per cent; Societe Generale - ODI bought 2,93,98,652 shares or 6.04 per cent and Goldman Sachs (Singapore) PTE. - ODI bought 2,59,81,215 shares or 5.33 per cent.  

Today, shares of SpiceJet Ltd surged over 10 per cent to Rs 72.80 per share from its previous closing of Rs 66.16 with an intraday high of Rs 72.80 and an intraday low of Rs 67.20. 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.