Updated February 22nd, 2024 at 13:12 IST

SpiceJet shares surge 8% after company raised Rs 316 crore through preferential issues

The airline received the first tranche of Rs 744 crore in late January, following its earlier declaration of intent to raise Rs 2,250 crore.

Reported by: Business Desk
SpiceJet | Image:PTI
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SpiceJet share price surge: The shares of SpiceJet rose as much as 7.65 per cent to an intraday high of Rs 70.6 apiece on the NSE on Thursday, February 22. This comes after the company announced that it has secured an additional Rs 316 crore through preferential issues, bringing its total fundraise to Rs 1,060 crore. This move comes as the Gurugram-based low-cost carrier intensifies efforts to bolster its operational capabilities amid ongoing legal battles.

The airline received the first tranche of Rs 744 crore in late January, following its earlier declaration of intent to raise Rs 2,250 crore through the issuance of securities to 64 investors, as disclosed in an exchange filing.

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In a board meeting convened on Wednesday, SpiceJet allotted 4.01 crore shares to two investors, including Aries Opportunities Fund Ltd., and approved the allotment of 2.31 crore warrants to four investors, including Elara India Opportunities Fund Ltd. These warrants grant investors the option to subscribe to an equivalent number of shares in the future.

Ajay Singh, Chairman and Managing Director of SpiceJet, expressed confidence in the company's prospects, stating, “With this additional funding, we are well-equipped to pursue our expansion plans and enhance our operational capabilities.”

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The Supreme Court recently directed the airline to pay $1.25 million to Credit Suisse AG by March 15 to settle outstanding arrears. The dispute revolves around an aircraft maintenance agreement between SpiceJet and Switzerland-based SR Technics, with Credit Suisse asserting its right to payment for invoices raised against SpiceJet for aircraft maintenance and repair.

During the court proceedings, senior advocate Siddhartha Dave, representing Credit Suisse, informed the bench of Justices Hima Kohli and Ahsanuddin Amanullah that SpiceJet was in default of $1.25 million as of February 15.

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SpiceJet Chairperson Ajay Singh has been directed to appear before the court in the third week of March.

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Published February 22nd, 2024 at 13:12 IST