SpiceJet shares hit new 52-week high after company expresses interest in acquiring Go First
₹69.20 apiece. This follows a substantial 20% surge in the previous trading session. SpiceJet's stock has been garnering attention in recent weeks due to various positive developments.
Today, the company announced its interest in acquiring Go First and outlined its intention to submit an offer after conducting a thorough due diligence process on the financially troubled carrier. Also Read: SpiceJet makes part payment to lessors, seeks more time from NCLT "SpiceJet Limited has expressed interest with the Resolution Professional of Go First and wish to submit an offer post-diligence with a view to creating a strong and viable airline in a possible combination with SpiceJet," the company said in today's exchange filing. Go First filed for bankruptcy in May this year after reporting a loss due to "faulty" Pratt & Whitney engines that grounded about half of its 54 Airbus A320neos.
Notably, an Indian airline has voluntarily applied for bankruptcy protection to renegotiate its contracts and debt for the first time. Also Read: SpiceJet shares close to 52-week high after allotment of preferential issue. Buy, sell or hold? SpiceJet's board has recently approved and initiated the process of raising fresh capital of about US$270 million via a mix of equity and warrants.
With the fresh round of funding, the company targets to double its fleet in 12–18 months, un-grounding certain aircraft and leasing some more. On December 4, the National Company Law Tribunal (NCLT) dismissed an insolvency petition by aircraft lessor Willis Lease Finance Corporation, which is claiming dues. In August, SpiceJet allocated more than 48 million shares to nine aircraft lessors to clear outstanding dues totaling ₹2.31 billion (about $28 million).
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