SpiceJet shares gain on board approval to raise ₹316 crore via preferential issue
Upstox
2 min read • Updated: February 22, 2024, 8:36 PM
Summary
The low-cost carrier received the first tranche of ₹744 crore in January as a part of its plans to raise a total of ₹2,250 crore through the issuance of securities to 64 investors.
Shares of SpiceJet Ltd gained more than 7% on Thursday after the company announced raising an additional ₹316 crore through a preferential share issue. With this, the company's total funds raised through preferential issue will reach ₹1,060 crore.
The low-cost carrier received the first tranche of ₹744 crore in January as a part of its plans to raise a total of ₹2,250 crore through the issuance of securities to 64 investors. SpiceJet has also initiated the process to raise an additional ₹1,000 crore.
SpiceJet's Board of Directors approved the distribution of 4.01 crore equity shares to two investors including Aries Opportunities Fund Limited, during its Preferential Allotment Committee meeting on February 21. The board also approved the allotment of another 2.31 crore warrants to four other investors. The investors can claim an equal number of equity shares against these warrants.
The additional funds raised through the issue will be used by the airline to pursue its expansion plans.
The additional funds raised through the issue will be used by the airline to pursue its expansion plans. The struggling airline had previously announced a 10-15% cut in its workforce by March 2024 , as part of its turnaround plan.
After the fundraising announcement, shares of SpiceJet gained as much as 7.65% to an intraday high of ₹70.6 apiece on BSE. However, closed 2.3% higher at ₹66.9 per share