SpiceJet shares rose 5.5% in trade on Monday (September 9), reaching an intraday high of Rs 64.86 per share. The spike in the airline's shares occurred as a result of a number of positive factors influencing corporate perception. SpiceJet shares were up 4.62 percent, or Rs 2.84, at Rs 64.3 as of 9:46 a.m., while the BSE Sensex fell 1.95 points to 81,181.98.

Block Deal Boost

SpiceJet shares soared after big block deals occurred at the counter. Last viewed on the BSE, roughly 1.5 million shares had changed hands through numerous block deals. According to sources, Ajay Singh was planning to reduce his interest in the company by more than 10%. According to BSE records, the promoter group owned little more than 47% of the carrier as of June 30, 2024.

Restructuring and Settlement With Carlyle Aviation

Aside from that, SpiceJet informed investors on Friday via an exchange filing that it has signed a term sheet with Carlyle Aviation to restructure certain of the company's aircraft leasing commitments totaling $137.68 million as of June 30, 2024. The company's lease obligations will be modified to $97.51 million upon settlement and waivers under the new term sheet, according to the exchange report.

Fundraising Plans

The cash-strapped airline also intends to collect around Rs 2,500 crore through qualified institutional placement (QIP) and Rs 736 crore via Previous Warrants and Promoter Infusion. According to the company's investor presentation, the monies will be used to expand its fleet, settle liabilities, and for other purposes. SpiceJet, which had a fleet of 74 planes in 2019, now operates only approximately 20.

SpiceJet Q1 FY25

In the quarter ended June 30, 2024, the low-cost airline, headquartered in Gurugram, reported a 20% year-on-year (Y-o-Y) fall in consolidated net profit to Rs 158.1 crore, compared to Rs 197.6 crore in Q1FY24. The dip was attributed to a decrease in flying operations due to financial constraints. The airline's operating revenue fell 14.7% to Rs 1,708 crore, compared to Rs 2,003.6 crore in the same period last fiscal year.