On Wednesday the share price of one of the largest airlines rose 5.4 percent to its intraday high of Rs 65.6 per share from its previous close of Rs 62.2 after the company planned to raise funds of Rs 2,250 Crores in the Annual General Meeting.
SpiceJet Limited is a small-cap stock with a market capitalization of Rs 4,465 Crores, the share price of the company has risen by 116 percent in the last six months For instance if an investor invested Rs 1 Lakh six months ago the current value would be Rs 2.16 Lakhs.
Here are some of the reasons for the stock jump of 116 percent in the last six months.
● According to the media report, SpiceJet seeks shareholder approval for Rs 2,250 crore fundraising at its Annual General Meeting (AGM) on January 10, 2023.
● The carrier aims to revive by bringing back 25 grounded planes under “SpiceJet 3.0.” Investors like Carlyle Aviation show interest.
● The airline has added five leased Boeing 737s, including three Boeing 737 Max aircraft, to its fleet to meet rising passenger demand and expand its services.
● SRAM & MRAM Group, based in the United Kingdom, has invested $100 million in SpiceXpress, a SpiceJet subsidiary.
● The company has expressed interest in acquiring Go First, which filed for bankruptcy in May 2023
● The promoter of the company Ajay Singh infused Rs 500 crore in the company on July 12, 2023.
However, Looking at the company’s financials, their net revenue decreased by 27 percent year over year, from Rs 1,954 crore in Q2FY23 to Rs 1,429 crore in Q2FY24. Their revenue rose by 28 percent sequentially from Rs 2,004 crore in Q1FY24 to the current levels.
In addition, the company has reduced its net loss by 46 percent year over year, from a net loss of Rs 833 crore in Q2FY23 to a net loss of Rs 449 crore in Q2FY24. Their profit decreased by 326 percent on a quarterly basis from a net profit of Rs 198 crore in Q1FY24 to the current levels.
The promoter of the company owns 56.53 percent, the general public owns 43.18 percent, foreign institutional investors own 0.27 percent, and domestic institutional investors own 0.02 percent.
SpiceJet Ltd’s primary business is providing air transport services for the transportation of passengers and cargo.
Written by Sriram KV
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