SpiceJet Stock Soars on Growth Expectations
SpiceJet shares witnessed a significant surge on Friday, reaching a seven-month high of Rs 72.25 on the BSE. This 9% intra-day rally was fueled by investor optimism regarding the airline's future growth prospects. The stock has climbed 15% in the past two days, accompanied by substantial trading volumes. This positive sentiment stems from SpiceJet's anticipated healthy growth trajectory.
The airline's board recently approved a fundraising plan of up to Rs 3,000 crore through the issuance of equity shares or other eligible securities to qualified institutional buyers via a qualified institutional placement (QIP). SpiceJet is actively engaging with potential investors, holding meetings both in India and abroad.
Furthermore, SpiceJet's management expressed confidence in the company's growth potential during an investor presentation last week. They highlighted the promising outlook for the Indian aviation industry, driven by a demand-supply imbalance. SpiceJet anticipates a substantial increase in its fleet size, with plans to unground 28 aircraft. This includes various Boeing and De Havilland models.
However, SpiceJet continues to face challenges, including financial difficulties, legal battles, and grounded aircraft. The airline is seeking to raise funds to address these issues and fulfill its obligations.
In a recent development, SpiceJet challenged a Delhi High Court order in the Supreme Court. The order directed the grounding and return of three engines leased from foreign entities. The Delhi High Court declined to intervene, upholding the single-judge order and urging the parties to resolve the dispute.