Shares of SpiceJet skyrocketed and hit a 20% upper circuit on 7 December after the company announced that its Board of Directors are set to meet on 11 December to consider and weigh options for raising fresh capital.

In its regulatory filing, the company said that its board will meet on 11 December to discuss and consider options for raising fresh funds through the issue of equity shares or convertible securities on a preferential basis. The fundraising will be done in accordance with the relevant provisions of applicable laws and is also subject to approval from the shareholders of the company.

The decision to raise funds comes after the National Company Law Tribunal (NCLT) dismissed a plea to initiate insolvency proceedings against the company, which lessor Willis Lease Finance filed over its unpaid dues.

In 2023, three aircraft lessors had filed four insolvency pleas against the company for the non-payment of dues. Other than the aircraft lessors, a tech services provider has also filed an insolvency plea against the company.

The debt-ridden company has been facing operational disruptions nationwide, including the recent flight services delay in Pune, Patna and New Delhi airports.

In September, the company’s promoters reduced their holding from 58.98% to 56.53%.

At 3:30 pm, the shares of SpiceJet closed 19.99% higher at Rs 52.29 on BSE.