Why SpiceJet Rallied Around 10 Per cent Today: Key Factors Behind the Upsurge!
FIIs stakes increased from 1.81 per cent to 25.12 per cent while DIIs stakes from 5.05 per cent to 13.94 per cent in September 2024.
SpiceJet is set to significantly expand its fleet by the end of November with the induction of ten aircraft, marking a major step in the airline’s growth plans. Seven of these aircraft will be acquired on lease, while three previously grounded SpiceJet planes are being reintroduced into service.
The airline has already signed agreements for the leased aircraft, with the full induction of all seven planes expected by November 15. Two of these leased aircraft have already arrived in India and are scheduled for immediate induction. SpiceJet will also operationalize its grounded planes in phases, with the first three set to re-enter service before the end of November. SpiceJet plans to phase in the three grounded aircraft by the end of November.
Furthermore, this fleet expansion follows the company’s successful Qualified Institutional Placement (QIP), which raised Rs 3,000 crore. Major investors include Goldman Sachs (Singapore), Morgan Stanley Asia, and Tata Mutual Fund.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
SpiceJet’s additional Rs 736 crore funding will further enhance its financial stability, allowing for ungrounding existing planes, investing in technology, and expanding into new markets.
According to Ajay Singh, SpiceJet’s Chairman and Managing Director, this growth will enable the airline to meet increasing air travel demand and offer better connectivity and reliable services.
Recently, SpiceJet resolved its dispute with Engine Lease Finance Corporation (ELFC) over a $16.7 million claim, reaching an amicable settlement for an undisclosed lower amount, thus improving its financial standing.
Today, the company's shares surged by approximately 10 per cent, reaching around Rs 222.45. As of now, the market capitalization is Rs 8,022 crore. Over the past year, the shares have also provided a remarkable return of about 75 per cent. The FIIs stakes increased from 1.81 per cent to 25.12 per cent while DIIs stakes from 5.05 per cent to 13.94 per cent in September 2024.
SpiceJet is a Small-Cap airline company that primarily operates in the air transport sector, offering services for the carriage of both passengers and cargo. It is the second-largest airline in India based on market capitalization.
Disclaimer: The article is for informational purposes only and not investment advice.