Spicejet made a big announcement following the market shutdown last Friday. The impact of this announcement can be evident in its shares on Monday.
On Monday, i.e. in early trade, the price of Spicejet share rose by more than 5%.
The increase in the cost of Spicejet share was evident when the company announced its arrangement for restructuring its debt and agreement in the matter with Carlyle Aviation.
Spicejet share opened at Rs 63.65 on the BSE on Monday, which is 3.56% higher than the previous day’s closing price of Rs 61.46.
After this, the price of Spicejet share rose by more than 5% to an intraday high of Rs 64.86, which is more than 5%.
The Spicejet share price has jumped by more than 58% in the last year. As per a press release published by SpiceJet the company.
Carlyle Aviation Management Limited has signed a term sheet to change the structure of certain leases of SpiceJet which total $137.68 million (till June 30th, 2024).
SpiceJet has been struggling with a financial crisis for the past several months.
For some time now, SpiceJet promoter Ajay Singh has been trying to sell a large stake to raise about Rs 3,000 crore.
The airline previously announced that it would raise 2,250 crores from 64 shareholders, the airline can raise just 1,060 crores.
This was due to the withdrawal of one of the primary investors.
DGCA Increased Surveillance On SpiceJet
Let us tell you that the Directorate General of Civil Aviation (DGCA) has increased its surveillance on SpiceJet.
Its goal is to guarantee the security and reliability of airline operations.
Meanwhile, SpiceJet’s flight has been stopped at Dubai Airport due to outstanding payment reasons.
Recently, DGCA said in an announcement, in light of the previous reports and the special audit carried out during August 2024.
SpiceJet was once again put under surveillance with immediate effect.
A 20% Decrease In Net Profit
SpiceJet reported a decline of 20% in its consolidated net profit to around 158 crore in the first quarter that ended in on June 20, 2024.
It was 198 crore during the same period in the previous year.
Profit from operation over the review period fell 15% compared to the previous year, to Rs. 1,708 crore contrast to the Rs 2,003 crore recorded in the same time frame last year.
Quick Fact
| Company name | SpiceJet |
|---|---|
| Announcement | Debt restructuring with Carlyle Aviation |
| Debt amount | $137.68 million (till June 30, 2024) |
| Share price rise | More than 5% on Monday |
| Share opened at | ₹63.65 (BSE) |
| Share rise (intraday high) | ₹64.86 |
| Share growth in 1 year | More than 58% |
| Stake sale | Promoter trying to raise ₹3,000 crore |
| Planned fundraising | ₹2,250 crore |
| Actual raised amount | ₹1,060 crore |
| DGCA action | Increased surveillance |
| Profit decrease | 20% |
| Net profit (Q1 2024) | ₹158 crore |
| Previous net profit | ₹198 crore |
| Operational profit decrease | 15% |
| Current operational profit | ₹1,708 crore |
| Previous operational profit | ₹2,003 crore |
| Flight stoppage | Dubai Airport due to unpaid dues |
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