SpiceJet Submits Bid To Buy Go First, Stock Surges To 52-Week High

SpiceJet Submits Bid To Buy Go First, Stock Surges To 52-Week High

Last week, on December 12, the Board of Directors of SpiceJet Ltd. on approved the raising of fresh capital of over Rs 2,250 Crore (approximately USD 270 million) through the issuance of equity shares to Financial Institutions, FII’s, HNI’s and private investors.

Oliviya KunjumonUpdated: Tuesday, December 19, 2023, 12:11 PM IST
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SpiceJet Submits Bid To Buy Go First, Stock Surges To 52-Week High | Image: SpiceJet (Representative)

SpiceJet Limited, a prominent player in the Indian aviation industry, on Tuesday announced that the company has expressed interest with the Resolution Professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet, the company announced through a regulatory filing.

SpiceJet's stocks on Tuesday surged by almost 8 per cent, reaching a new 52-week high of Rs 64.21 after the company announced its interest in participating in the ongoing corporate insolvency resolution process of Go Airlines (India) Limited, known as 'Go First.' The latter is undergoing proceedings under the Insolvency and Bankruptcy Code, 2016.

SpiceJet, a scheduled airline operating in both domestic and international civil aviation, marked its 18th year in operation in May 2023. In addittion, it runs a cargo service named 'SpiceXpress' through a subsidiary.

Board approves raising fresh capital of over Rs 2,250 Crore

Last week, on December 12, the Board of Directors of SpiceJet Ltd. on approved the raising of fresh capital of over Rs 2,250 Crore (approximately USD 270 million) through the issuance of equity shares to Financial Institutions, FII’s, HNI’s and private investors aimed at fortifying the airline's financial strength and accelerating its growth trajectory, the company announced through an exchange filing.

Financial Highlights

SpiceJet reported a net loss of Rs 432 crore during the three-month period ending in September. In comparison, during the same period last year, the company reported a loss of Rs 835 crore. Additionally, there was a nearly 30 per cent decline in revenue, which amounted to Rs 1,348 crore for the quarter ending in September 2023.

SpiceJet Limited shares

The shares of SpiceJet Limited on Tuesday at 11:26 am IST on BSE were trading at Rs 67.40, up by 5.09 per cent.

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