Why SpiceJet's Share Price Is Jumping Today

  • Benzinga India
  • Stock Market News
Why SpiceJet's Share Price Is Jumping Today
Credit: © Reuters.

Benzinga - Shares of SpiceJet (NS: SPJT ) were gaining on Thursday after the low-cost carrier picked up another round of funding.

What Happened: SpiceJet has secured an additional infusion of ₹316 crore in investments, further bolstering its total funds raised to ₹1,060 crore through a preferential issue.

During the recent meeting of the preferential allotment committee on February 21, SpiceJet’s board of directors approved the allocation of 4.01 crore equity shares to two investors, including Aries Opportunities Fund.

Additionally, the committee sanctioned the issuance of 2.31 crore warrants to four investors, including Elara India Opportunities Fund Limited, granting them the right to apply for an equivalent number of equity shares.

What’s Next: SpiceJet said it plans to use the fresh funds to propel its expansion endeavours and reinforce its operational capabilities.

SpiceJet is currently executing a strategic revival plan. Earlier this year, it successfully secured ₹744 crore as the initial tranche of capital infusion, with additional subscriptions pending regulatory approval. The company has also initiated steps to raise an additional ₹1,000 crore.

Moreover, the airline has tapped into another ₹1,000 crore under the government’s emergency credit line guarantee scheme (ECLGS), with CEO Ajay Singh committing to an additional injection of ₹500 crore.

SpiceJet also recently announced plans to reduce its workforce by 1,400 employees, constituting 15% of its staff, as part of its turnaround and cost optimisation strategy.

Price Action: SpiceJet’s share price was up 4.76% at ₹68.70 in early trade on Thursday.

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