SpiceJet Share Price Jump 7% After Company Reveals Intentions to List on NSE Soon

SpiceJet, the domestic airline, witnessed a remarkable upswing of 7.3%, reaching its 52-week high at ₹59 on Monday, December 11, following the announcement of its securities' listing on the National Stock Exchange. This surge signifies a 106% increase from its 52-week low of ₹22.65 recorded on May 23, 2023.

Financial Performance

Demonstrating robust performance, SpiceJet's stock has notched up gains of 37% in the past year and an impressive 52% year-to-date. outperforming the benchmark Sensex, which recorded a 14% increase during the same period. The stock delivered positive returns in 8 out of the 12 months in 2023, with the most surge observed in December, rising over 33%. However, challenges were encountered in March and May, resulting in declines exceeding 18%.

Fundraising and Operational Revival

In response to financial challenges, SpiceJet is planning to raise ₹1,000-1,200 crore ($120 million-$144 million) in fresh capital. This capital infusion aims to settle pending salaries and revive a grounded fleet of 25 aircraft. The airline is contemplating raising funds through the issuance of equity shares or convertible securities, as stated in an exchange filing on Wednesday.

Previous Financial Struggles

The airline has faced financial hurdles, including difficulties in repaying funds to its former owner, Kalanithi Maran. A longstanding legal dispute with Credit Suisse has further complicated matters, with the bank claiming unpaid dues of around $24 million. In September, the airline made a $1.5 million payment to Credit Suisse following a Supreme Court order in a separate case.

SpiceJet, which used to be India's second-largest airline, is set to announce its financial results for the second quarter of the fiscal year 2024 today. This isn't the first time the airline has postponed reporting its results. In the first quarter of the fiscal year 2024, SpiceJet recorded a profit of ₹197 crore, marking its highest profit in the last four years.

Final Words

SpiceJet's recent surge to a 52-week high, combined with plans for a capital infusion and stock listing, reflects the airline's proactive measures to address financial challenges and revive its operations. Investors are closely monitoring developments as the airline navigates a complex financial landscape, aiming for stability and sustained growth.