SpiceJet shares gain over 5% ahead of July 23 board meeting to consider fundraising

In a filing on Thursday, the company informed the stock exchanges that a meeting of its Board of Directors will be held on July 23 to consider raising fresh capital through the issue of securities.

SpiceJet informed the bourses that the board will consider raising funds through the issuance of eligible securities to Qualified Institutional Buyers (QIBs) by way of QIP.

Earlier this week, the airline's chairman and managing director, Ajay Singh, said the company was exploring opportunities to raise fresh funds to further bolster its growth plans and take advantage of the burgeoning demand in the Indian aviation market.

SpiceJet Ltd shares opened higher at ₹55.54 apiece on the BSE and rallied as much as 5.4% to hit an intraday high of ₹58.27 apiece. However, the stock trimmed some of the early gains and traded at ₹56.91 apiece, up 2.95%, at around 1:30 pm.

In the past year, SpiceJet shares have nearly doubled in value, surging by 92%.

In February, the company's board approved fundraising of up to ₹316 crore through the preferential issue of shares to revitalise its grounded aircraft, which was impacting the airline's financial performance at the time.

The airline released its full-year financial results for the March quarter and full FY24 on July 15, after a delay of several months. The budget flyer narrowed its consolidated net loss for FY24 to ₹423 crore against a loss of ₹1,513 crore in the previous financial year. Its revenue from operations declined 20% year-on-year to ₹7,085 crore in FY24.

On a quarterly basis, the airline coped better in the January-March quarter, recording a consolidated net profit of ₹127 crore, against a loss of ₹299 crore in the previous quarter and a loss of ₹6 crore in the year-ago period. Consolidated revenue from operations remained under pressure in Q4FY24, declining 9.1% from the previous quarter to ₹1,738 crore. Revenue dropped 19% year-on-year in the March quarter.