SpiceJet's Shares Fly High On NSE Listing Hopes Even If Its Flights Struggle To Do The Same

SpiceJet shares climbed on Monday after the airline announced plans to list on the National Stock Exchange (NSE).

What Happened: The board of the financially challenged airline convened on December 11 to explore options for securing fresh capital, contemplating the issuance of equity or convertible securities on a preferential basis.

Although the airline refrained from specifying the listing date in its exchange filing, it assured stakeholders that the event would occur “soon.”

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Why It Matters: On December 5, the National Company Law Tribunal (NCLT) rejected a plea by aircraft lessor Willis Lease Finance to initiate insolvency proceedings against SpiceJet due to outstanding dues.

Previously, three aircraft lessors filed four insolvency pleas against SpiceJet for non-payment of dues. Additionally, a tech services provider also lodged an insolvency plea against the airline.

Confronting operational challenges and delays at airports in Pune, Patna and New Delhi, the debt-laden airline is navigating through testing times.

Significantly, SpiceJet promoter Ajay Singh is reportedly in talks with global private credit funds to raise up to $100 million (₹833.9 crore). The funds are earmarked for refinancing a portion of the promoter’s debt and potentially injecting fresh equity into the airline.

For the first quarter of FY24, SpiceJet reported a standalone net profit of ₹204.56 crore, marking a notable turnaround from the ₹788.83 crore net loss it posted last year. The airline is yet to disclose its financial results for the September quarter.

Price Action: Spicejet’s share price was up 9.68% at ₹60.29 in afternoon trade on Monday, easing a little after gaining more than 10% earlier in the session.

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