SpiceJet shares locked in 20% upper circuit limit on fundraising plans
SpiceJet shares were locked in the 20% upper circuit limit at ₹52.29 apiece in today's trade. This is also the stock's new 52-week high. The significant uptick was driven by the company's announcement of plans to raise fresh funds to settle its dues.
In an exchange filing on Wednesday, the company announced that its Board of Directors is scheduled to meet on December 11, 2023. The company said that the agenda of the meeting is to discuss and consider, inter alia, options for raising fresh capital through the issue of equity shares and/or convertible securities on a preferential basis. SpiceJet also said that the proposals considered will be subjected to the approval of the shareholders of the company and the receipt of applicable regulatory approval.
This announcement comes amid reports that the airline is seeking to raise about $100 million, with promoter Ajay Singh reportedly in talks with global credit funds. Also Read: SpiceJet looking to raise $100mn, Ajay Singh in talks with credit funds: Report In a big relief, the National Company Law Tribunal (NCLT) on Monday (December 04) dismissed an insolvency petition by aircraft lessor Willis Lease Finance Corporation, which is claiming dues. However, apart from Willis Lease, SpiceJet is also facing insolvency petitions from three other aircraft lessors—Aircastle Ireland Ltd., Wilmington, and Celestial Aviation.
NCLT has also issued a notice to SpiceJet on a similar plea filed by business consultancy Raymach Technologies Pvt. Ltd., which recently moved the tribunal against the airline. Also Read: Domestic air passenger traffic rises 11% to 1.26 crore in October In August, SpiceJet allocated more than 48 million shares to nine aircraft lessors to clear outstanding dues
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