SpiceJet shares jump 10% today amid heavy volumes; here's why
SpiceJet share price: SpiceJet also said that it would seek shareholders' approval for the re-appointment of Singh as managing director of the company for a period of three years with effect from May 21, 2023, and also approve his Rs 60 lakh monthly salary and a 2.50 per cent share in the airline's profit.
- Aug 2, 2023,
- Updated Aug 2, 2023 2:46 PM IST
Shares of budget carrier SpiceJet Ltd rose sharply in Wednesday's deals, extending their gains for the third straight session amid heavy trading volumes. The stock surged 10.03 per cent to hit a day high of Rs 32.25 over its previous close of Rs 29.31. Around 54.78 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 10.85 lakh shares. Turnover on the counter stood at Rs 17.10 crore, commanding a market capitalisation (m-cap) of Rs 1,865.72 crore. There were 18,84,250 sell orders today against buy orders of 6,38,473 shares.
Today's sharp upward run came after it was reported that the low-cost carrier reportedly sought shareholder approval to issue 5.91 per cent of its stake to Carlyle Aviation Partners, the aircraft financing unit of US-based private equity giant Carlyle Group.
According to The Economic Times report, the US leasing firm, which has the largest exposure among other lessors, would convert its dues of over $28 million to equity. The airline's share has been valued at Rs 48 per equity share by the lessors, which is higher than the current trading price of the airline.
The report also mentioned that SpiceJet would issue equity shares of 20 per cent to promoter Ajay Singh at Rs 10 per share against the infusion of Rs 500 crore that Singh is willing to infuse into the company. However, the airline is yet to issue an official statement.
SpiceJet also said that it would seek shareholders' approval for the re-appointment of Singh as managing director of the company for a period of three years with effect from May 21, 2023, and also approve his Rs 60 lakh monthly salary and a 2.50 per cent share in the airline's profit.
On the technical setup, the stock was last seen trading higher than the 5-day, 10-, 20-day, 30-day, 50-, 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 61.21. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 0.89 against a negative price-to-book (P/B) value of 0.30.
The scrip has an average target price of Rs 44, Trendlyne data showed, suggesting a potential upside of 42 per cent. It has a one-year beta of 0.87, indicating low volatility on the counter.
Meanwhile, Indian equity benchmarks fell sharply today due to a sell-off across all sectors. The 30-share BSE Sensex pack crashed more than 1,000 points to trade below 65,450-level, while the broader NSE Nifty pack moved over 300 points down to hit sub-19,450 mark.
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Shares of budget carrier SpiceJet Ltd rose sharply in Wednesday's deals, extending their gains for the third straight session amid heavy trading volumes. The stock surged 10.03 per cent to hit a day high of Rs 32.25 over its previous close of Rs 29.31. Around 54.78 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 10.85 lakh shares. Turnover on the counter stood at Rs 17.10 crore, commanding a market capitalisation (m-cap) of Rs 1,865.72 crore. There were 18,84,250 sell orders today against buy orders of 6,38,473 shares.
Today's sharp upward run came after it was reported that the low-cost carrier reportedly sought shareholder approval to issue 5.91 per cent of its stake to Carlyle Aviation Partners, the aircraft financing unit of US-based private equity giant Carlyle Group.
According to The Economic Times report, the US leasing firm, which has the largest exposure among other lessors, would convert its dues of over $28 million to equity. The airline's share has been valued at Rs 48 per equity share by the lessors, which is higher than the current trading price of the airline.
The report also mentioned that SpiceJet would issue equity shares of 20 per cent to promoter Ajay Singh at Rs 10 per share against the infusion of Rs 500 crore that Singh is willing to infuse into the company. However, the airline is yet to issue an official statement.
SpiceJet also said that it would seek shareholders' approval for the re-appointment of Singh as managing director of the company for a period of three years with effect from May 21, 2023, and also approve his Rs 60 lakh monthly salary and a 2.50 per cent share in the airline's profit.
On the technical setup, the stock was last seen trading higher than the 5-day, 10-, 20-day, 30-day, 50-, 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 61.21. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 0.89 against a negative price-to-book (P/B) value of 0.30.
The scrip has an average target price of Rs 44, Trendlyne data showed, suggesting a potential upside of 42 per cent. It has a one-year beta of 0.87, indicating low volatility on the counter.
Meanwhile, Indian equity benchmarks fell sharply today due to a sell-off across all sectors. The 30-share BSE Sensex pack crashed more than 1,000 points to trade below 65,450-level, while the broader NSE Nifty pack moved over 300 points down to hit sub-19,450 mark.
Also read: Hot stocks on August 2, 2023: IRFC, Hawkins Cookers, Reliance Power, Sula Vineyards and more
Also read: Adani Wilmar Q1 results: Adani firm may report single-digit rise in profit, says Nuvama
Also read: Larsen & Toubro shares to turn ex-dividend today. Key details