SpiceJet hits upper circuit after board plans to raise fresh capital

Shares of SpiceJet hit 20 per cent upper circuit in early tre on Thursday after company said it is planning to raise fresh capital through issue of equity shares at its board meeting on December 11. shares of SpiceJet soared to a 52-week high of Rs 52.29 apiece on BSE, post-anuncement.

In an exchange filing, company said, “ Board of Directors of Company, in its meeting scheduled for Monday, December 11, 2023, will discuss and consider options for raising fresh capital through issue of equity shares and/or convertible securities on a preferential basis, in accordance with relevant provisions of applicable laws and subject to approval of shareholders of Company and receipt of applicable regulatory approvals.”

Operational disruptions

financially strained airline has been facing issues with operational disruptions, resulting in flight delays across several airports, including Pune, Patna, and New Delhi.

Three aircraft lessors and a techlogy services provider have taken legal action against SpiceJet, filing insolvency pleas due to unpaid dues. Aircastle Ireland, Wilmington, and Celestial sought NCLT's intervention to recover ir dues through insolvency proceedings. Ar insolvency plea from a techlogy services provider was also reported.

NCLT dismissed Willis' plea on December 4, 2023, following SpiceJet's challenge to plea's validity, questioning its maintainability over a six-month period.

NCLT raised concerns about missibility of a fresh plea for same cause of action against SpiceJet without prior tification or court permission. 

In August, SpiceJet allocated over 48 million shares to nine aircraft lessors to settle outstanding dues worth Rs 231 crore.