Shares of SpiceJet Ltd. rallied over 9% to a day’s high of Rs 63 on 8th October after the firm announced plans to induct 10 new aircraft into its fleet by the end of November, continuing its turnaround efforts following a significant Rs 3,000-crore fundraising.

SpiceJet’s fleet expansion includes seven leased aircraft and the reintroduction of three grounded planes, marking a key step in its turnaround efforts.

Two leased planes have already arrived in India and will be inducted on 10th October, with all aircraft expected by mid-November. Chairman Ajay Singh stated that the addition is essential for meeting growing air travel demand and enhancing operational capabilities, positioning SpiceJet to improve services and expand its route network.

This fleet expansion comes after SpiceJet raised Rs 3,000 crore through a successful Qualified Institutional Placement (QIP) in September, which has been crucial for the airline’s financial recovery.

The QIP enabled SpiceJet to pay off significant dues and support operational growth, attracting investments from top-tier institutions like Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.

In addition to the Rs 3,000 crore raised from the QIP, SpiceJet will receive Rs 736 crore from a previous funding round, which is essential for clearing its outstanding GST dues of Rs 71 crore and settling Rs 80 crore in salary arrears from June to August 2024.

Despite progress, SpiceJet needs help with Rs 3,700 crore in debt related to lessors, engineering, and statutory liabilities.

However, the QIP has provided significant relief, helping the airline work towards restoring operations to pre-2019 levels, when it had 74 operational aircraft compared to just 28 currently.

At 12:49 PM, the shares of SpiceJet were trading 5.91% higher at Rs 60.96 on BSE.

The future of investing is here! Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!