Here's what sparked 8% rally in SpiceJet shares today
SpiceJet shares jumped nearly 8% to Rs 33 in Tuesday's trade after the low-cost carrier allotted over 4.81 crore equity shares on a preferential basis to nine of its aircraft lessors to clear outstanding dues of Rs 231 crore.
«The Allotment Committee of the Board of Directors of the Company at its meeting held on September 4, 2023, has considered and approved allotment of 4,81,23,186 equity shares of the face value of Rs 10 each at an issue price of Rs 48 each on preferential basis to aircraft lessors consequent upon conversion of their existing outstanding dues aggregating to Rs 2,30,99,12,928,» the company said in an exchange filing.
The nine lessors who have been allotted the shares include SASOF III (A13) Aviation Ireland DAC, SASOF III (A6) Aviation Ireland DAC, SASOF III © Aviation Ireland DAC, SASOF III (E) Aviation Ireland DAC, SASOF III (A19) Aviation Ireland DAC, SASOF II (J) Aviation Ireland DAC Citrine Aircraft Leasing Limited, Fly Aircraft Holdings Seven Limited, Fly Aircraft Holdings One Limited.
The company also stated that it has further, on a preferential basis, allotted 3,41,72,000 equity shares and 13.15 crore warrants at an issue price of Rs 29.84 each to Spice Health Care Private Limited (an entity under ‘promoter group’).
At 10.51 a.m., the scrip was trading 7% higher at Rs 33.2 on BSE. The stock also surged over 25% in the last three months.
However, it has fallen 26% in the past one year and declined over 50% in the last two years.
As per Trendlyne data, the average target price of SpiceJet is Rs 32, which shows a downside of 3% from the current market prices. The consensus recommendation from two analysts for the stock is a 'Hold'.
Technically, the stock's day RSI (14) is at 50.1.
