The shares of SpiceJet rallied nearly 7% in opening trade on December 11 as the Indian airline announced its plan to soon list its securities on the NSE. "This is to inform you that to reach a wider investor base, the Company shall soon be listing its securities on the National Stock Exchange of India Limited," the airline said in an exchange filing on December 11.
The surge in SpiceJet share price also comes ahead of the company's board meeting to discuss and consider options to raise fresh funds through issuing equity shares or convertible securities on a preferential basis per the relevant provisions of applicable laws and subject to the approval of the shareholders of the company, the airline said.
The board meet announcement came at a time when Moneycontrol reported that SpiceJet promoter Ajay Singh was in discussions with a bunch of global private credit funds to raise up to $ 100 million to refinance part of the promoter debt and potentially infuse fresh equity in the airline.
SpiceJet is also likely to consider declaring July to September quarter results later in the day.
Also Read: Dubai court allows SpiceJet to resume operations of aircraft seized by lessor at Al Maktoum airport
The developments come as the budget carrier has been scrambling to raise funds and restore operations for a part of its fleet that has been grounded amid a string of weak quarterly results and fierce competition in the sector.
In August, SpiceJet had told a court that it was "struggling to stay afloat", as it was ordered to repay money to its former owner, Kalanithi Maran.
In September, the airline made a $1.5 million payment to Credit Suisse after the Supreme Court court order in a separate case. The top court granted the airline six months to clear arrears of $3 million in the subsequent hearing. Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over the bank's claim over unpaid dues of around $24 million.
The airline stock gave up some of the opening gains a few minutes into the trading session. SpiceJet shares were trading 4.24% higher at ₹57.30 on BSE at 9:24 am. So in 2023 (year-to-date), the stock has given a return of 46% to its investors as against the benchmark Sensex which rose 14% during the period.
First Published: Dec 11, 2023 9:41 AM IST
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