SpiceJet share price rises over 5% on fundraising plans; check details
₹500 crore into the company to improve the airline's financial status. SpiceJet shares opened at ₹33 apiece on BSE.
In an exchange filing on Wednesday, the company stated that the board had discussed options for raising new capital for the company. In order to improve the company's financial position, promoter Ajay Singh offered to invest ₹500 crore by way of subscription to equity shares and/or convertible securities/equity share warrants on a preferential basis, along with the company's promoter group in accordance with SEBI.
The board discussed the issue and decided to issue equity shares and/or convertible securities and/or equity share warrants to the company's promoter and/or the promoter group on a preferential basis in one or more tranches for an amount of ₹500 crore, subject to the approval of the company's shareholders. Additionally, the company stated in an exchange filing that this fund raising will also be considered as an equity contribution by the Promoters of the Company under the Emergency Credit Line Guarantee Scheme (the "ECLG Scheme") of the Government of India, which will grant the firm additional credit facilities totalling ₹206 crore under the ECLG Scheme.
The board further decided to seek approval of the shareholders in accordance with extant provisions of the Companies Act, 2013 and other applicable rules and regulations. On the technical front, as per trendlyne data, the stock price fell 19.3% and underperformed its sector by 86.5% in the past year.
“Yesterday there was volume based volatility where prices slipped lower in the initial phase however by the day end it ended in positive terrain. Although this stock is an underperformer in the near term there could be a positive traction where
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