Shares of this airline company jumped 5 percent in Tuesday’s trading session after informing its interest in acquiring one of its competitors Go First. The shares have delivered a multibagger return of 141 percent to its shareholders in six months.
With a market capitalisation of Rs. 4,580 crores, the shares of SpiceJet Ltd started Tuesday’s trading session on a higher note at Rs. 66 compared to its previous close at Rs. 64.21. The shares hit a high of Rs. 69.20, gaining around 5 percent, also recorded as the company’s fresh 52-week high and currently trading at Rs. 66.75 apiece.
Such a positive movement in the share price was observed after the company confirmed its interest in bidding for the bankrupt Go Airlines (India) Ltd, known as Go First. Furthermore, the company believes that this acquisition of Go First will help create a strong and viable airline.
According to reports, the company expressed its interest in the resolution process of Go First and wished to submit an expression of interest (EoI) along with a viable revival plan for the grounded airline.
Aside from SpiceJet, Africa-focused Safrik Investments, and Sharjah-based Sky One Company have also reportedly shown an interest in buying the bankrupt airline Go First.
In addition, the company’s board has also recently approved and initiated the process of raising fresh capital of about USD 270 million to strengthen the low-cost carrier’s financial position and provide resources to invest in growth plans.
Coming onto the company’s financial statements, the revenue decreased by 29 percent from Rs. 2,004 crores during the June quarter to Rs. 1,429 crores in the September quarter. Moreover, the net profits showed a transition from a net profit of Rs. 198 crores to a net loss of Rs. 449 crores during the same timeframe.
In September 2023, SpiceJet announced the induction of 10 Boeing 737 aircraft, including five 737 Max aircraft, into its fleet. The airline aimed to capitalize on the winter travel rush by adding more aircraft, with the latest batch of five planes also including three MAX variants.
Headquartered in New Delhi, SpiceJet Ltd was incorporated in 1984. The company principally engaged in the business of providing air transport services for the carriage of passengers and cargo.
Written By Vaibhav Patil
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