SpiceJet receives approval from BSE for fund infusion of Rs 2,242 crore

SpiceJet is taking off on a multi-pronged mission for a brighter future. BSE’s in-principle approval for a Rs 2,242 crore fund infusion through new shares and warrants is like a shot of rocket fuel, greenlighting growth initiatives and boosting financial stability. This follows a resounding endorsement by shareholders at the AGM, and with this capital injection, SpiceJet is ready to navigate the aviation skies. 

SpiceJet is also spreading its wings geographically. Non-stop flights connecting Ayodhya with Chennai, Bengaluru, and Mumbai take off in February, opening up a direct route to faith and pilgrimage. This expansion is just the beginning, with more Ayodhya connections and other new routes like Mumbai-Srinagar, Chennai-Jaipur, and Bengaluru-Varanasi taking flight soon. 

Recently, SpiceJet has expressed interest in acquiring Go First through a potential merger, aiming to create a stronger airline.  

Financial Performance           

SpiceJet Limited reported a strong robust quarter for FY24, with a net sales decrease of 29% to Rs 1,347.52 crore, compared to Rs 1,897.90 crore in the same quarter last year. The operating profit stood at a loss of Rs 146.40 crore from a loss of Rs 407.99 crore. The company reported a loss for the quarter which stood at Rs 449.43 crore, which was a loss of Rs 833.23 crore in the previous year’s same quarter.  

Business Overview        

SpiceJet Limited is principally engaged in the business of providing air transport services for the carriage of passengers and cargo. The company is the 2nd largest player in the domestic aviation industry with a market share of 13%. It also has a market share of 13% in the international aviation market among the domestic players and is the 3rd largest player behind Air India and Indigo Airlines. 

Stock Price Movement        

Today, the stock opened at Rs 65.31, with a high and low of Rs 65.81 and Rs 63.30, respectively. The stock is currently trading at Rs 65.30, which decreased by 0.02%. The stock has a 52-week high of Rs 69.20 and a 52-week low of Rs 22.65.  

The stock has shown impressive growth, and investors should keep a close eye on this stock.      

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.