Airline company SpiceJet jumped over 7 percent to hit its 52-week high in morning deals on Monday, December 11, after the firm announced that it would soon be listing its securities on the National Stock Exchange.
The stock rose as much as 7.3 percent to its 52-week high of ₹59. It has now soared over 106 percent from its 52-week low of ₹22.65, hit on May 23, 2023.
The airline stock has gained 37 percent in the last 1 year and over 52 percent in 2023 YTD, giving positive returns in 8 of the 12 months in 2023. It surged the most in December, up over 33 percent, extending gains after a 23 percent jump in November. Meanwhile, it shed the most in March and May, down over 18 percent each.
This comes after the company on Friday (December 8) informed that it has obtained a “favourable" order from Dubai International Financial Centre regarding the grounding of an aircraft last week for the removal of engines by their lessor when the airline was forced to divert its flight.
“In a DIFC Court hearing on 7 Dec 2023, the Order was discharged in favour of SpiceJet. Additionally, the Judge has directed an inquiry into losses suffered by SpiceJet as a result of the Order having been made. The Court has further ordered to pay towards the legal costs incurred by SpiceJet," the airline said in a statement.
The Court on October 30 had issued a freezing order for engines installed on aircraft bearing registration mark VT-SLM resulting in it being grounded on November 30.
A Reuters report also informed that the troubled domestic airline SpiceJet is likely to raise ₹1000-1200 crore ($120 million-$144 million) in fresh capital to pay pending salaries and revive its grounded fleet of 25 aircraft. The budget carrier will consider raising capital through an issue of equity shares or convertible securities on a preferential basis on December 11, it has said in an exchange filing on last Wednesday.
India’s troubled domestic airline SpiceJet is likely to raise ₹10-12 billion ($120 million-$144 million) in fresh capital to pay pending salaries and revive its grounded fleet of 25 aircraft, a TV channel reported on Thursday.
The budget carrier will consider raising capital through an issue of equity shares or convertible securities on a preferential basis on December 11, SpiceJet said in an exchange filing on Wednesday.
The carrier has been scrambling to raise funds and restore operations for a part of its fleet that has been grounded. In August, the airline told NCLT that it was “struggling to stay afloat", as it was ordered to repay money to its former owner, Kalanithi Maran.
In a separate notification to bourses, SpiceJet also stated that its board would also meet today to consider and approve, inter-alia, the unaudited standalone and consolidated financial results for the second quarter ended September 30.
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