SpiceJet shares rise 5% ahead of AGM for fundraising plans

Shares of SpiceJet surged more than 5 per cent during the early trading session on Wednesday as the company holds its annual general meeting (AGM) today to seek approval to raise funds. A number of investors, including some big names, have shown interest in the low-cost carrier.

According to some media reports citing sources, Carlyle Aviation Partners, the aircraft financing unit of private equity giant Carlyle Group, recently held a meeting with SpiceJet CMD Ajay Singh, the report said, adding that they discussed prospects and strategies for SpiceJet and SpiceXpress.

SpiceJet in its AGM on Wednesday, January 10, will seek approval from shareholders to raise Rs 2,250 crore. SpiceJet has planned 'SpiceJet 3.0', aiming to bring 25 grounded planes back to operations. SpiceJet is reportedly interested in bidding for the grounded GoFirst, backed by the Wadia Group.

Cash-strapped SpiceJet was dragged to the NCLT by multiple lessors over pending dues, had announced to raise fresh capital of Rs 2,250 crore through the issuance of equity shares to financial institutions, FIIs, HNIs, and private investors. The company board had approved fund raising plans and was now seeking approval from shareholders.

Amid the newsflow in the media, shares of SpiceJet gained more than 5 per cent to Rs 65.60 on Wednesday, commanding a total market capitalization close to Rs 4,400 crore. The company had previously settled at Rs 62.20 in the previous trading session on Tuesday.

Shares of SpiceJet have surged about 190 per cent from its 52-week low at 22.65 on May 23, 2023. The stock has surged more than 115 per cent in the last six-month period, while it is up 83 per cent in the last three-months. However, it has delivered single digit returns in the last one month.

Currently, Carlyle Aviation holds a 7 percent stake in the cash-strapped carrier. SpiceJet has grounded 25 of its jets as it struggles to repay its lessors. The AGM of the company will begin on 3.30 pm, after the market hours and the outcome will be announced after the conclusion of the meeting.

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