Budget carrier SpiceJet on Friday said the company has rescheduled its board meeting to Monday to consider raising fresh capital through the issue of eligible securities to qualified institutional buyers.
Shares of the airline surged over 12 per cent after the company reported a higher net profit of Rs 107 crore in the three months ended December. The carrier had a net profit of Rs 23.28 crore in the year-ago period.
The stock jumped 12.31 per cent to settle at Rs 39.70 on the BSE. During the day, it rallied 15.27 per cent to Rs 40.75. In volume terms, 25.44 lakh shares were traded on the BSE during the day.
“This is to inform you that the board meeting scheduled on February 24, 2023 (Friday) to consider and approve, inter-alia, the following items have been adjourned to February 27 (Monday),” the airline said in a regulatory filing.
The no-frills airline, which has been grappling with multiple headwinds, including legal woes, is looking to raise fresh capital through the issuance of eligible securities to qualified institutional buyers.
Besides, the carrier plans to issue equity shares on a preferential basis upon the conversion of outstanding liabilities into equity shares, subject to applicable regulatory approvals, according to a filing to the BSE.
In December last year, SpiceJet chairman and managing director Ajay Singh told shareholders that the company is engaged with investment bankers to raise up to $200 million to achieve its plans. He had also said the increase in the Emergency Credit Line Guarantee Scheme to Rs 1,500 crore will go a long way in providing the much needed stability to the sector.
“The infusion of additional funds will help SpiceJet normalise its obligations, unground its fleet and induct new planes into our fleet... we have also completed a series of settlements with most of our major partners, including manufacturers and lessors, setting the stage for our seamless growth and expansion,” he had said.
Revenues of SpiceJet rose to Rs 2,829 crore in the latest quarter under review compared with Rs 2,679 crore in the year-ago period. “Despite a big jump in passenger traffic, business continued to be impacted by high fuel prices and depreciating rupee,” the airline said.
There was a 48 per cent increase in aviation turbine fuel prices, while the rupee depreciated by 11 per cent to the dollar. The airline launched 15 new routes and operated 254 charter flights in the quarter. It continues to implement measures such as improving selling and distribution.
