Know Why SpiceJet Shares Increased by 20% Today
Spicejet Ltd’s share price increased 19.98% to Rs 39.70 per share at 3:30 PM IST on September 6. Shares of SpiceJet have increased for a fourth straight day today. A day after the firm announced that the National firm Law Tribunal (NCLT) had instructed it to address its disputes with lessors, the stock’s share price saw a sharp increase. The case was postponed until September 15 by the court, which required the airline to provide shares to the lessor.
The firm said in a filing with the exchange on Wednesday that it has received an extension from the Registrar of Companies under Section 96 of the Companies Act, 2013, for the purpose of holding the Annual General Meeting (AGM) of the firm for the fiscal year ending March 31, 2023, of up to three (3) months. As a result, the company’s AGM will take place on or before December 31, 2023, for the fiscal year that concluded on March 31, 2023.
Earlier this week, the business announced the conversion of the following aircraft lessors’ current outstanding debts totaling Rs. 2,30,99,12,928 into 4,81,23,186 equity shares with a face value of Rs. 10 apiece and an issue price of Rs. 48.00.
Additionally, the business granted Spice Healthcare Private Limited (a member of the “promoter group”) 3,41,72,000 equity shares with a face value of Rs. 10 each at an issue price of Rs. 29.84 per share. Additionally, Spice Healthcare Private Limited (a firm in the “promoter group”) received 13,14,08,514 warrants from the company, with the opportunity to apply for and receive an equal number of equity shares with a face value of Rs. 10 each at an issue price of Rs. 29.84 each.
Celestial Aviation is the fourth lessor to file an action in the NCLT against SpiceJet for unpaid debts. Willis Lease Finance Corp, Wilmington, and Aircastle are among other lessors that have active lawsuits against the airline.
The Delhi High Court has ordered SpiceJet to clear a debt to previous owner Kalanithi Maran for Rs 100 crore by September 10 in order to avoid further litigation. The entire sum owed by SpiceJet to Maran is Rs 397 crore. On September 11, the High Court is expected to issue a ruling about the situation.
On September 9 of last year, the stock reached its 52-week high on the BSE, reaching Rs 46.20. SpiceJet shares have significantly underperformed the Sensex over the last year in terms of equity return. Compared to an 11% rise in the market benchmark Sensex, the company has lost roughly 12% of its value in the last year (as of September 6).
