SpiceJet jumps on buzz of funding talks

SpiceJet rose 3.02% to Rs 17.05 at 13:00 IST on BSE on reports the company is in advanced talks to get funding.

Meanwhile, the BSE Sensex was up 21.85 points, or 0.09%, to 24,384.90.

On BSE, so far 75.07 lakh shares were traded in the counter, compared with an average volume of 29.88 lakh shares in the past one quarter.

The stock hit a high of Rs 17.45 and a low of Rs 16.40 so far during the day. The stock hit a 52-week high of Rs 40.90 on 20 May 2013. The stock hit a 52-week low of Rs 12.50 on 4 March 2014.

 

The stock had underperformed the market over the past one month till 19 May 2014, sliding 2.76% compared with 7.66% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 17.38% as against Sensex's 17.57% rise.

The small-cap company has an equity capital of Rs 535.28 crore. Face value per share is Rs 10.

According to reports, SpiceJet is in advanced stages of a capital infusion discussion with an external entity that when completed will help the company clean up its arrears and rebuild with confidence.

A foreign airline can start a new airline with a 49% stake in an Indian company that is 51% owned by local investors, the government announced in September 2012 as part of a liberalization drive. Earlier, foreign airlines were not allowed to pick up equity in aviation companies, while foreign investors and financial institutions could hold up to a 49% stake.

SpiceJet reported net loss of Rs 321.51 crore in Q4 March 2014, higher than net loss of Rs 185.71 crore in Q4 March 2013. Total income from operations rose 8.37% to Rs 1589.61 crore in Q4 March 2014 over Q4 March 2013.

SpiceJet is India's low fare airline. As on 31 March 2014, promoters held 53.48% stake in SpiceJet.

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