SpiceJet shares hit 52-week high after airline expresses interest to take over Go First

Shares of airline SpiceJet Ltd surged nearly 8% to a fresh 52-week high today after the airline said it has expressed interest with the resolution professional of Go First. SpiceJet shares zoomed 7.77% to Rs 69.20 on Tuesday against the previous close of Rs 64.21 on BSE. The aviation stock opened higher at Rs 66 today. A total of 150.59 lakh shares of the firm changed hands amounting to a turnover of Rs 100.73 crore on BSE. The market cap of SpiceJet rose to Rs 4645.32 crore. The stock fell to a 52-week low of Rs 22.65 on May 23, 2023.   

The stock has gained 75.87% since the beginning of this year and risen 148.19% in a year. 

In terms of technicals, the relative strength index (RSI) of SpiceJet stands at 73, signaling it's trading in the overbought territory. The stock has a beta of 0.1, indicating very low volatility in a year.

The airline said it intends to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet.

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Last week, the board of the airline approved and initiated process of raising fresh capital of about US$ 270 million to strengthen its financial position and provide resources to invest in growth plans.

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It would raise the funds by selling shares and warrants to help revive its grounded planes.

SpiceJet has grounded 25 of its jets as it struggles to repay its lessors.

SpiceJet reported a net loss of Rs 432 crore ($52 million) for the three months through September. It posted loss after three quarters of profits as more than a third of its planes were grounded. It reported a loss of Rs 835 crore in the year-ago period. Revenue fell nearly 30 per cent to Rs 1,348 crore in the September 2023 quarter.

 

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