Multibagger penny stock below Rs 60: This airline company approves fundraising through preferential issue of shares from 64 individuals including FIIs & HNIs!

The stock gave multibagger returns of over 100 per cent in just 6 months whereas BSE Small-Cap Index is up by 30 per cent.

SpiceJet Ltd informed that the Board of Directors of the company has approved the issue and allotment of equity shares and warrants on a preferential basis, subject to shareholder approval and regulatory approvals. The company plans to issue up to 32,08,05,972 equity shares of Rs.10 each and up to 13,00,00,000 warrants, each convertible into one equity share.

The issue price will be Rs 50 per equity share/warrant or such price as determined by the SEBI regulations, whichever is higher. The names of the proposed allottees. The type of issuance is preferential allotment on a private placement basis. Through a strategic allocation of shares to 64 entities, including financial institutions and foreign institutional investors (FIIs), the company is taking a proactive step to weather the current financial storm.

SpiceJet's board has greenlighted a private placement of equity shares and warrants to various investors, subject to necessary approvals. This move aims to raise over Rs 2,250 crore (approximately USD 270 million) by offering shares to financial institutions, foreign institutional investors (FIIs), high-net-worth individuals (HNIs) and private investors.

The airline announced that this preferential issue will involve several investors, including Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Ltd, Nexus Global Fund, Prabhudas Lilladher, and Resonance Opportunities Fund.

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 Rs 3,900 crore.

Today, shares of SpiceJet Ltd plunged 1.45 per cent to Rs 57.20 per share with an intraday high of Rs 59.85 and an intraday low of Rs 55.70. The stock gave multibagger returns of over 100 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.