SpiceJet hits upper circuit after board plans to raise fresh capital

Shares of SpiceJet hit the 20 per cent upper circuit in early trade on Thursday after the company said it is planning to raise fresh capital through the issue of equity shares at its board meeting on December 11. The shares of SpiceJet soared to a 52-week high of Rs 52.29 apiece on the BSE, post-announcement.In an exchange filing, the company said, “The Board of Directors of the Company, in its meeting scheduled for Monday, December 11, 2023, will discuss and consider options for raising fresh capital through the issue of equity shares and/or convertible securities on a preferential basis, in accordance with the relevant provisions of applicable laws and subject to the approval of the shareholders of the Company and the receipt of applicable regulatory approvals.”Operational disruptionsThe 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 technology 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 their dues through insolvency proceedings. Another insolvency plea from a technology services provider was also reported.NCLT dismissed Willis' plea on December 4, 2023, following SpiceJet's challenge to the plea's validity, questioning its maintainability over a six-month period.The NCLT raised concerns about the admissibility of a fresh plea for the same cause of action against SpiceJet without prior notification or court permission. In August, SpiceJet allocated over 48 million shares to nine aircraft lessors to settle outstanding dues worth Rs 231 crore.

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SpiceJet hits upper circuit after board plans to raise fresh capital

The shares of SpiceJet soared to a 52-week high of Rs 52.29 apiece on the BSE, post-announcement.

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