SpiceJet share price gains nearly 3% ahead of board meet
1 min read . Updated: 24 Feb 2023, 02:28 PM IST
PremiumThe company in an exchange filing on Tuesday informed the exchanges that the board will consider the proposal to raise capital
The share price of budget carrier SpiceJet on Friday gained more than 2 percent ahead of the board meeting where the company is to consider proposal to shore up its equity capital.
The shares of SpiceJet were up by 2.83% at ₹36.35 on BSE. The airline stock has declined more than 40% in a year's period.
The company in an exchange filing on Tuesday informed that the board will consider issuing equity shares on a preferential basis in a board meet on Friday, February 24, 2023 and mull conversion of outstanding liabilities. The company will also consider raising fresh capital via issue of securities to qualified institutional buyers.
“This is to inform you that the Board of Directors of the Company in its meeting scheduled to be held on February 24, 2023 (Friday), will discuss and consider, inter-alia, issuance of equity shares on preferential basis consequent upon conversion of outstanding liabilities into equity shares of the Company, subject to applicable regulatory approvals," the domestic airline, SpiceJet informed in an exchange filing.
The company is likely to sell a 5% stake in the airline to its largest lessor US-based Carlyle Aviation Partners, said people aware of the development, Mint had reported yesterday.
The airline had been in discussions with strategic investors since last year for a stake sale to bring in funds. Under the proposed deal, Carlyle is expected to convert over $100 million of outstanding dues into equity in SpiceJet and compulsorily convertible debentures (CCDs) in the cargo arm SpiceXpress, Mint reported.
The proposed deal has valued SpiceJet's logistics subsidiary SpiceXpress at over $1 billion in deal with Carlyle.
SpiceJet is yet to announce its earnings for the third quarter ended December 2022 (Q3 FY23). Though, it reported a consolidated net loss of ₹833 crore for the quarter ended September 2022 as compared to loss of ₹570.5 crore in the year-ago quarter. The consolidated revenue from operations rose by 45% to ₹1954 crore from ₹1345 crore in the year ago period.