The share price of this air transport company surged by 5.5 percent to an intraday high of Rs 60.84 apiece from its previous close after it won a legal victory as ruled by the Supreme Court of India and will seek a Rs 450 crore refund for the same.
Share price movement:
The stocks of Spice Jet Limited surged around 2 percent trading at Rs 58.59 levels at 2:06 pm on Monday. The firm has generated a multi-bagger return of 100 percent over the past year. The market capitalization of Spice Jet Limited stands at Rs 4,653.32 crores.
What happened:
As per the filings published by Spice Jet Limited through BSE, the firm announced that it has won a legal victory when the Supreme Court dismissed Spice Jet’s appeal to pay upto Rs 300 crores in Interest to Kalanithi Maran’s appeal. With this victory, SpiceJet will seek a Rs 450 crore refund and continue efforts to raise new funds, strengthening its financial position and supporting its expansion plans.
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Earlier, a lower court had ruled that SpiceJet must pay Maran up to Rs 300 crore. Now, with the Supreme Court’s ruling, SpiceJet does not have to make this payment.
Financials:
Reviewing the financials of Spice Jet limited on a year-on-year basis, the revenues declined by 20 percent from Rs 8,869 crores in FY23 to Rs 7,050 crores in FY24. In the same time frame, the net losses of the firm decreased from Rs 1,503 crores to Rs 409 crores.
Fundraising:
As of 23rd July 2024, Spice Jet Limited’s board has approved the raising of upto to Rs 3,000 crores through the issue of shares or any other eligible securities to qualified institutional buyers. In December 2023, the board approved issuing up to 32 crore equity shares and up to 13 crore warrants at Rs 50 each, raising Rs 2,250 crore on a preferential basis. Additionally, In January and February 2024, the company allotted 9.55 crore equity shares and 11.64 crore warrants, generating Rs 1,060 crore.
Airplane fleet:
As of November 2023, SpiceJet Limited’s fleet consists of 54 aircraft, including Boeing 737 Max, Boeing 700, and Q400s. It has a fleet size of 54 aircraft as of November 2023. However, 21 of these aircraft are non-operational due to unpaid lease rentals. The fleet size has decreased from 76 aircraft at the end of FY23 to a peak of 114 in FY21.
Market share:
SpiceJet is the 5th largest airline in India’s domestic aviation sector, holding a market share of about 5.5 percent for the calendar year 2023.
Shareholding Pattern:
As of March 2024 shareholding pattern, the promoters, The FII, the DII’s, and the public held 48.27 percent, 1.73 percent, 5.30 percent, and 44.71 percent of stakes in Spice Jet Limited respectively.
About the Company:
Headquartered in Gurgaon SpiceJet Limited is engaged in the business of providing air transport services for the carriage of passengers and cargo. The company was incorporated in the year 1984 and operates the maximum number of UDAN flights in India.
Written By Zahal
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