SpiceJet shares take off on successful ₹3,000 crore QIP

23 Sep 2024 , 01:31 PM

SpiceJet shares jumped 6% to a day’s high of ₹72.80 on the BSE after the low-cost airline concluded its Rs 3,000 crore Qualified Institutional Placement (QIP), which drew global investors including Goldman Sachs and Morgan Stanley.

As of 13:05 p.m. the shares of SpiceJet were trading at ₹69.86.

With this capital infusion, the airline plans to boost its operations, improve its fleet, and expand its network to satisfy rising passenger demand. SpiceJet intends to rapidly restore to operation its 36 grounded aircraft owing to a lack of spares.

Meanwhile, SpiceJet chairman and managing director Ajay Singh stated that the company aims to have 100 aircraft by the end of 2026.

“SpiceJet is an airline that has strong fundamentals but was hamstrung by two black swan events one after the other – the worldwide grounding of Boeing 737 Max, followed by Covid pandemic,” Singh told ET during a telephone interview.

In addition to the Rs 3,000 crore raised through its QIP, SpiceJet would receive an extra Rs 736 crore from the prior fundraising round, bolstering its financial stability and expansion aspirations.

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