SpiceJet's Strategic Rs 294 Crore Infusion: Promoter Group's Stake Rises
As of December 2024, there has been a significant change in FIIs' shareholding, which decreased from 22.87 per cent in September 2024 to 15.76 per cent in December 2024.
SpiceJet has announced a significant capital infusion of Rs 294.09 crore by its Founder and Promoter, Ajay Singh, through the Promoter Group Company, Spice Healthcare Private Limited. This investment involves converting 13.14 crore warrants into equity shares, raising the Promoter Group's stake in SpiceJet from 29.11 per cent to 33.47 per cent. Ajay Singh plans to sell up to 3.15 crore equity shares, using the proceeds to help fund the conversion. This move highlights the Promoter Group's confidence in SpiceJet's long-term growth and strategic direction. The company's board is set to meet by March 18, 2025, to approve the equity share allotment. Ajay Singh expressed that this capital infusion reaffirms their commitment to the airline and positions it for future growth. This development is part of SpiceJet's ongoing turnaround strategy, aiming to strengthen its financial position and seize new opportunities.
DSIJ offers a service 'Pop Future Swing Trading" with recommendations for stock future swing trading tips based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
SpiceJet Ltd is a prominent player in India's aviation sector, primarily providing air transport services for passengers and cargo. Known for making air travel affordable, SpiceJet operates a fleet of Boeing 737s and Q-400s, serving as a major regional player under the UDAN scheme. The airline is IATA-IOSA certified, ensuring high safety and operational standards. As of March 2025, SpiceJet's stock is priced at Rs 48.19, with a market capitalization of approximately Rs 5,830.48 crore. Despite recent challenges reflected in its 1-year and 3-year returns of -23.52 per cent and -23.95 per cent respectively, the company continues to focus on strategic initiatives to enhance its market position.
In the Quarterly Results of December 2024, the company reported revenue of Rs 1,231.07 crore, reflecting a decline of 35.33 per cent YoY but an increase of 35.13 per cent QoQ from Rs 911.04 crore in September 2024. The net profit stood at Rs 24.97 crore, compared to a net loss of Rs 301.46 crore in December 2023 and Rs 441.73 crore in September 2024, showing a growth of 108.28 per cent YoY and 105.65 per cent QoQ. The net profit margin improved to 2.03 per cent from negative margins of 15.84 per cent in December 2023 and 48.49 per cent in September 2024.
For the full-year financials, the company posted revenue of Rs 7,049.97 crore in FY24, a decrease of 20.51 per cent from Rs 8,868.84 crore in FY23. The net loss reduced to Rs 147.80 crore in FY24 from Rs 1,852.63 crore in FY23, reflecting an improvement of 27.32 per cent. The net profit margin stood at negative 26.28 per cent in FY24 compared to negative 28.74 per cent in FY23.
As of December 2024, the shareholding pattern is as follows: Promoters hold 29.14 per cent, FIIs hold 15.76 per cent, DIIs hold 7.57 per cent, and the public holds 47.55 per cent. There has been a significant change in FIIs' shareholding, which decreased from 22.87 per cent in September 2024 to 15.76 per cent in December 2024.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.