SpiceJet shares rose about 7% in early trading on December 11 after the Indian airline announced plans to list its securities on the NSE.
SpiceJet shares rose about 7% in early trading on December 11 after the Indian airline announced plans to list its securities on the NSE. “This is to inform you that the company will soon be listing its securities on the National Stock Exchange of India Limited in order to reach a wider investor base,” the airline said in an exchange filing on December 11.
The increase in SpiceJet share price also comes ahead of the company’s board meeting, which will discuss and consider options for raising new funds by issuing equity shares or convertible securities on a preferential basis in accordance with applicable laws and subject to shareholder approval, according to the airline.
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The notification of the board meeting coincided with Moneycontrol reporting that SpiceJet promoter Ajay Singh was in talks with a group of global private credit groups to obtain up to $100 million to restructure some of the promoter debt and potentially infuse additional equity in the airline. SpiceJet is also expected to announce its July-September quarter earnings later in the day.
Following a Supreme Court judgment in a separate lawsuit, the airline paid Credit Suisse $1.5 million in September. In the second hearing, the Supreme Court granted the airline six months to clear $3 million in arrears. Credit Suisse and SpiceJet have been in a legal battle since 2015 over the bank’s claim for $24 million in unpaid dues.
A few minutes into the trading session, the airline stock gave up some of its early gains. SpiceJet shares were trading 4.24% higher on the BSE at 57.30 at 9:24 a.m. So, in 2023 (year to date), the stock has returned 46% to investors, compared to the benchmark Sensex, which increased 14% during the same period.
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