SpiceJet Share Price Today: Shares of low-cost carrier SpiceJet Ltd rose up to 3 per cent on Wednesday morning trade after the airline said it was looking to raise funds and ahead of the board meeting to consider Q4FY22 earnings. SpiceJet Chairman and Managing Director Ajay Singh said the airline is looking to raise funds to the tune of Rs 2,000 cr. The shareholders of SpiceJet, which is a listed company, have approved fundraising of Rs 1,500 to Rs 2,000 crore, and some of the amounts have already been raised, he said.
Singh also said it is doing the utmost to work through the stress that it has faced and the strategy is to raise resources.
“We are doing it by way of the government-supported scheme ECLGS, getting new aircraft from Boeing and therefore through the SLB process, exploring options for fundraise… we are exploring all options," the SpiceJet Chairman said.
The domestic airline is pursuing multiple ways to raise funds including government lending schemes, stake or equity sale.
Without divulging specific details, Singh said the carrier would do everything to ensure it remains a strong and vibrant player.
Earlier in the month, a media report claimed that the low-cost airline was in talks with a Middle Eastern carrier for a possible stake sale. In a clarification to the exchanges, SpiceJet had said that “the company continues to explore various means of raising funds to meet its business requirements, subject to compliance with prescribed procedures and receipt of applicable approvals."
Additionally, a meeting of the company’s board would be held on August 31, 2022, to consider and approve the audited standalone and consolidated financial results for the fourth quarter and financial year ended March 31, 2022, along with unaudited standalone and consolidated financial results for the first quarter ended June 30, 2022.
Should you Invest?
“The Indian aviation industry is at the cusp of exponential growth in the next two decades due to its demographic advantages, the potential growth in middle-class income, rising business travel, reduced cost of air travel and increased travel in Tier-2 and Tier-3 destinations. However, being a commoditized industry, large players with high market share, low cost, and scale advantages will be the winners. Therefore, we recommend investors go with the industry leaders like InterGlobe Aviation Ltd than investing in marginalized and financially stressed players like SpiceJet Ltd.," said Punit Patni, Equity Research Analyst, Swastika Investmart Ltd.
Manoj Dalmia Founder and Director-Proficient Equities Limited, said: “Investors can accumulate at current levels as it is nearing a support area and holding it with a long-term perspective. Some good moves can be expected as short-term target of Rs 62 can be achieved by buying."
Ravi Singh, Vice President and Head of Research-ShareIndia, said: “Spicejet share price is trading in an overbought zone with a limited upside move around 52 levels amid fundraising plans. However, the airline is already facing several restrictions by DGCA due to its technical glitches in recent days. Investors may use this opportunity to exit their holdings and avoid fresh long positions at current levels."
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