SpiceJet shares fly 5.5% in trade; here is what is driving the stock

Large deals of 1.5 million shares take place in SpiceJet, the company plans QIP, restructuring, and settlement with Carlyle Aviation

Shares of SpiceJet edged higher by 5.5 per cent in trade on Monday (September 9) and logged an intraday high of Rs 64.86 per share. The surge in the airline's stock came after multiple triggers impacted sentiments of the company positively.

At around 9:46 AM, shares of SpiceJet were up 4.62 per cent or Rs 2.84 at Rs 64.3, compared to the BSE Sensex's decline of 1.95 points at 81,181.98.

Block deal boost

Shares of SpiceJet surged after large block deals took place at the counter. Last seen, on BSE, nearly 1.5 million shares had changed hands via multiple block deals. As per reports, Ajay Singh was likely to trim over 10 per cent stake in the company.

At the end of June 2024, the promoter group had a little over 47 per cent stake in the carrier, as per data available on the BSE.

Restructuring and Settlement with Carlyle Aviation

That apart, SpiceJet informed investors through an exchange filing on Friday, that it has signed a term sheet with Carlyle Aviation to restructure certain aircraft lease obligations of the company aggregating to $137.68 million as of June 30, 2024. After settlement and waivers after the new term sheet, the lease obligations of the company will be adjusted to $97.51 million, the company said in the exchange filing.  

Fundraising plans

The cash-stripped airline is also planning to raise around Rs 2,500 crore through qualified institutional placement (QIP) and Rs 736 crore through Previous Warrants and Promoter Infusion.

As per the company's investor presentation, the company plans to utilise the funds for fleet expansion, liability settlement, and other purposes.

SpiceJet, which had a fleet of 74 planes in 2019, is currently operating only around 20 aircraft.

SpiceJet Q1FY25

In the quarter ended June 30, 2024, the low-cost carrier, headquartered in Gurugram, reported a 20 per cent year-on-year (Y-o-Y) decline in consolidated net profit at Rs 158.1 crore, compared to Rs 197.6 crore in Q1FY24.

The decline was attributed to a reduction in flight operations due to financial challenges. The airline's revenue from operations also dipped 14.7 per cent to Rs 1,708 crore, compared to Rs 2,003.6 crore in the corresponding period of the preceding fiscal.