December 11, 2023
New Delhi, India
SpiceJet’s stock jumps over 7%
In a significant development for SpiceJet, the airline’s stock witnessed a remarkable surge of over 7%, reaching its 52-week high of ₹59. This positive momentum follows the company’s announcement of listing its securities on the National Stock Exchange (NSE).
Court Victory Boosts Investor Confidence
SpiceJet recently secured a favourable court order from the Dubai International Financial Centre (DIFC) regarding the grounding of one of its aircraft. The court order, received on December 8, was in favour of SpiceJet, with the judge directing an inquiry into the losses incurred by the airline. The court also mandated payment towards the legal costs incurred by SpiceJet. This legal victory has added to the positive sentiment surrounding the airline.
Strategic Move to Raise Capital
Amidst these developments, SpiceJet has unveiled plans to raise ₹1000-1200 crore ($120 million-$144 million) in fresh capital. The funds are intended to address pending salary payments and revitalize a portion of its grounded fleet, comprising 25 aircraft. The airline will consider raising capital through an issue of equity shares or convertible securities on a preferential basis. This move is part of SpiceJet’s broader efforts to navigate financial challenges, including the need to repay funds to its former owner.
Rupee vs Dollar: Currency Market Analysis, Rupee Stable
Stock Performance Overview
SpiceJet’s stock has demonstrated resilience over the past year, posting gains of 37% and surging over 52% in the current year. Notably, the stock experienced a substantial uptick of over 33% in December, building on a 23% increase in November. While facing challenges in March and May, resulting in losses exceeding 18% each month, the airline’s overall trajectory has been positive.
Board Meeting for Financial Results
In addition to these developments, SpiceJet’s board is scheduled to meet to consider and approve the unaudited standalone and consolidated financial results for the second quarter ending September 30. This meeting aims to provide further insights into the airline’s financial performance and strategic outlook.
In conclusion, SpiceJet’s stock surge, coupled with the NSE listing announcement and legal victory, reflects positive developments for the airline. The planned capital infusion further underscores SpiceJet’s commitment to addressing financial challenges and restoring its operational capabilities.
Also Read:
SIPs Surge to Record ₹17,073 Crore in November, Shaping New Investment Trends
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
