SpiceJet Stock Locked In Upper Circuit As Board To Consider Fundraise
The stock rose as much as 19.99% on the BSE to Rs 52.29 apiece.
Shares of SpiceJet Ltd. surged to the highest level in over a year and were locked in an upper circuit of 20% on Thursday after the airline announced its plans to raise fresh capital.
In a meeting scheduled on Dec. 11, the board of directors will consider options to raise fresh capital through issue of equity shares and/or convertible securities on a preferential basis, according to an exchange filing on Wednesday.
The decision comes after the National Company Law Tribunal dismissed on Dec. 4 a plea by aircraft lessor Willis Lease Finance to initiate insolvency proceedings against SpiceJet over unpaid dues. The airline is also facing insolvency pleas filed by Aircastle Ireland, Wilmington and Celestial Aviation.
SpiceJet's stock rose as much as 19.99% on the BSE to Rs 52.29 apiece, the highest since Aug. 3, 2022, compared to a 0.18% decline in the benchmark Sensex as of 11:36 a.m. The stock is suspended on the National Stock Exchange.
It has risen 34.94% on a year-to-date basis. The total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index was at 72.
One out of the four analysts tracking SpiceJet maintains a 'buy' rating on the stock, while three recommend 'hold,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 26.8%.
