Rs 3,000 Crore Fund Raise via QIP: Airline Stock Under Rs 60 in Green After Clearing All Pending Employee Provident Fund Dues
The stock is up by 28.7 per cent from its 52-week low of Rs 42.05 per share.
SpiceJet Ltd has made significant strides in its financial recovery. In a major step towards improving employee welfare and financial accountability, the airline has successfully cleared all pending employee provident fund (PF) dues amounting to Rs 160.07 crore, which had been outstanding for over two years.
Furthermore, within just three months of raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), SpiceJet has cleared all pending statutory liabilities, including Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary dues. This achievement strengthens the airline's balance sheet and positions it for a robust financial turnaround. By becoming current on its statutory dues, SpiceJet is also set to realize substantial savings on interest payments. The airline has been effectively utilizing its internal cash flows to meet its ongoing statutory obligations, demonstrating its improved financial health and operational discipline.
In addition to clearing its statutory obligations, the company has resolved multiple outstanding disputes with aircraft lessors and other creditors, significantly improving its balance sheet. The airline’s sustained efforts toward financial stability and operational resilience have recently been recognised by Acuité Ratings & Research Limited, which upgraded SpiceJet’s credit rating by four notches.
Ajay Singh, Chairman and Managing Director of SpiceJet, said, “We are pleased to announce the clearance of all pending employee PF dues. This marks a new chapter in SpiceJet’s journey. By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees. With the successful implementation of our financial turnaround strategy, we are confident in our ability to continue delivering superior service to our customers and achieving sustainable growth.”
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About the Company
Today, shares of SpiceJet Ltd surged 2.42 per cent to Rs 59.19 per share from its previous closing of Rs 57.79 per share. The stock is up by 28.7 per cent from its 52-week low of Rs 42.05 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 7,500 crore. According to the shareholding pattern of September 2024, FIIs bought 27,86,70,546 shares or a 21.06 per cent stake and increased their stake to 22.87 per cent compared to 1.81 per cent in June 2024 while DIIs bought 6,74,55,674 shares or 3.30 per cent stake in the company and increased their stake to 8.45 per cent in September 2024 compared to June 2024. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.