Share of low-cost carrier SpiceJet rose over 3% in afternoon trade today after the airline inked a Memorandum of Understanding (MoU) with New York-based Avenue Capital Group for a strategic alliance in respect of the financing, acquisition, and sale and lease-back of 50 new planes.
The stock opened with a gain of 2.34% at Rs 69.95 against previous close of Rs 68.35 on BSE. Market cap of the airline rose to Rs 4,254 crore on BSE. The share touched an intraday high of Rs 70.75, rising 3.51%.
The small cap stock trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages. The share has gained 90.24% in one year and fallen 26% since the beginning of this year.
The MoU sets out the conditions on which Avenue will assist SpiceJet with the new aircraft portfolio including sale and lease-back, and in the assumption of ownership of potentially up to 50 aircraft, the airline said.
"We are delighted to enter into this strategic alliance with Avenue Capital Group and we look forward to closely working with them. This alliance will ensure a seamless induction of the planes in our fleet and help us plan better for the long term," Ajay Singh, Chairman and Managing Director, SpiceJet said.