Shares of SpiceJet Ltd surged nearly 8% on Thursday after the company's board approved fundraising of up to ₹316 crore through preferential issue of shares.
With this, the total investment raised by the company through preferential issues stood at ₹1,060 crore.
The
budget airline expects that injecting capital will aid in revitalising its grounded aircraft, which are still impacting the airline's financial performance.
Reacting to the development, the stock surged as much as 7.65% to an intra-day high of ₹70.6 on BSE.
The airline recently introduced its vision for
SpiceJet 3.0, with the goal of reactivating 25 grounded aircraft. The company's ambitious revitalisation plans have attracted attention from the investor community, with reportedly 64 entities expressing interest in investing in the low-cost carrier.
In addition, SpiceJet is actively pursuing the acquisition of bankrupt rival GoFirst to strengthen its market presence further.
SpiceJet's CMD Ajay Singh and Busy Bee Airways, in which EaseMyTrip CEO Nishant Pitti is a majority stakeholder, submitted a joint bid for Go First airlines on February 16.
Go First, which ceased operations on May 3, 2023, due to financial difficulties primarily caused by problems with Pratt & Whitney engines, is currently undergoing insolvency resolution.
SpiceJet had announced that it would be the operating partner for the new airline, providing essential services, staff and industry expertise.
"By strategically aligning their flight schedules and destinations, SpiceJet and the new airline can capture a larger market share and cater to diverse passenger needs effectively," the company had said.
At 10.37 AM, shares of SpiceJet were trading 4.83% higher at ₹68.75 on the BSE.
