SpiceJet hits new 52-week high after it expresses interest in acquiring Go First

19 Dec 2023 , 02:07 PM

SpiceJet shares rose nearly 8% to a new 52-week high of Rs 69.20 on Tuesday after the budget carrier expressed its interest in acquiring Go First. After conducting due diligence on the bankrupt carrier, the business intends to submit its bid.

Go First, which ceased operations on May 3 due to financial difficulties caused mostly by Pratt & Whitney engine troubles, is undertaking insolvency proceedings.

In a regulatory filing, SpiceJet stated that the company has expressed interest in the resolution professional of Go First and wishes to submit an offer post-diligence, to create a strong and viable airline in a possible arrangement with SpiceJet.

The no-frills airline, which is facing financial difficulties, revealed last week that it had raised around USD 270 million from several investors. The company’s board has recently approved and initiated the process of raising fresh capital of about US$ 270 million to strengthen its financial position and provide resources to invest in growth plans, the press release stated.

SpiceJet’s aircraft has been grounded in part, and the airline is exploring for methods to raise finances. At least three aircraft lessors have declared bankruptcy against the company.

At around 1.59 PM, SpiceJet was trading 5.58% higher at Rs 67.79, against the previous close of Rs 64.21 on NSE.

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