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SpiceJet shares climb on NSE listing news and capital infusion talks

EditorAmbhini Aishwarya
Published 11/12/2023, 06:54
© Reuters.
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MUMBAI - Shares of Indian airline SpiceJet surged by nearly 7% at the market open today, buoyed by the announcement of an upcoming National Stock Exchange (NSE) listing and a pivotal board meeting to discuss potential capital infusion strategies. The board is set to review and sanction unaudited standalone and consolidated financial statements for the second quarter.

The spike in share price comes as investors anticipate the company's financial results for the July-September quarter, which are due to be declared later today. Despite some moderation following the initial surge, SpiceJet's stock was still trading up by 4.24% at ₹57.30 (USD1 = INR83.386) on the Bombay Stock Exchange (BSE) as of approximately 22:54 ET (03:54 GMT). This increase is part of a strong year-to-date performance for the airline, with its shares returning 46%, significantly outperforming the Sensex's growth of 14%.

This positive investor sentiment follows a favorable court ruling from December 8, where SpiceJet won a legal costs reimbursement related to an aircraft grounding incident that occurred from October 30 to November 30 due to an engine seizure.

In addition to equity shares or convertible securities issuance discussions, SpiceJet's Chairman and Managing Director, Ajay Singh, is reportedly in negotiations with global private credit funds for a potential deal valued at $100 million. This move could provide a substantial boost to the airline's financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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