SpiceJet shares extend gains on fundraising approval, connectivity announcements

Shares of SpiceJet Ltd surged during the trading session on Thursday, after the annual general meeting (AMG) of the company, wherein the shareholders for the company approved the proposal of fundraising by the means of issue of shares and warrants.

The company members or shareholders approved to issue an allotment of equity shares and warrants with an option to apply for and be allotted equivalent number of equity shares , on a preferential basis, said the company in an exchange filing with the bourses. SpiceJet plans to raise Rs 2,250 crore.

According to some media reports, Carlyle Aviation Partners expressed its interest in SpiceJet. The airline had sought shareholder approval to issue 5.91 per cent stake in the low-cost carrier to Carlyle Aviation Partners- the aircraft financing unit of global private equity giant Carlyle Group.

Following the AMG announcements, shares of SpiceJet surged another 3 per cent to Rs 67.35 on Thursday, commanding a total market capitalization of more than Rs 4,600 crore. The scrip had settled at Rs 65.44 in the previous trading session on Wednesday.

Shares of SpiceJet have surged about 200 per cent from its 52-week low at 22.65 on May 23, 2023. The stock has surged more than 120 per cent in the last six-month period, while it is up 85 per cent in the last three-months. However, it has delivered single digit returns in the last one month.

Along with the AGM announcement, SpiceJet's Chairman Ajay Singh said that the airline will soon be launching flights to Ayodhya and Lakshadweep under the regional connectivity scheme, Udey Desh ka Aam Nagarik (UDAN).

“We have exclusive rights to operate flights to Lakshadweep under the RCS and we will soon be launching flights to the island,” the airline’s chairman and managing director (CMD) Ajay Singh said in the annual general meeting held virtually on Wednesday. Currently only Alliance Air, a regional airline; operates to the island on the Kochi-Agatti-Kochi sector.

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