SpiceJet shares jump 8% after budget carrier expresses interest in acquiring Go First
SpiceJet jumped nearly 8% to hit a fresh 52-week high of Rs 69.20 on Tuesday after the budget carrier expressed its interest to acquire Go First. The company plans to submit its offer after carrying out due diligence on the bankrupt carrier.
Go First, which stopped flying on May 3 amid financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process, PTI reported.
In a regulatory filing, SpiceJet said it «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 stock has been rallying on multiple triggers including the company's plans to consider fundraising options and also getting the stock listed on NSE.
The no-frills airline, which is grappling with financial headwinds, last week announced raising around USD 270 million from various investors.
«The Board of the Company has recently approved and initiated the process of raising fresh capital of about US$ 270 million to strengthen its financial position and provide resources to invest in growth plans,» the filing said.
SpiceJet’s fleet has been partially grounded and the airline has been looking at ways to raise capital. At least three aircraft lessors have filed insolvency pleas against the company.
In July, SpiceJet promoter Ajay Singh infused Rs 500 crore by subscribing to equity shares.
