Shares of SpiceJet Ltd. surged by 4% to a day’s high of Rs 64.86 on September 9, following several positive triggers that boosted the company’s sentiment.

The company informed the exchanges that they have plans to issue shares to Carlyle Aviation as part of a restructuring deal to convert a portion of its dues into equity.

Carlyle will acquire SpiceJet shares to settle part of its outstanding dues, which totaled USD 137.68 million as of 30th June 2024. After settlement and waivers, lease obligations will be reduced to USD 97.51 million.

Reports suggest promoter Ajay Singh may reduce his stake in SpiceJet by over 10%, with the possibility of selling up to 15% if market conditions are favorable. As of June 2024, the promoter group held a 47.66% stake in the company.

Civil Aviation Minister Kinjarapu Ram Mohan Naidu stated he is closely monitoring SpiceJet’s situation and examining all issues in detail. The minister emphasised the need for more airlines in India to meet demand and maintain balance. SpiceJet plans to raise Rs 3,000 crore through a qualified institutional placement.

The company will use the proceeds to settle liabilities, expand its fleet, revive grounded aircraft, and add new planes. Restructuring with lessors will reduce finance costs and statutory payments.

The airline plans to focus on international routes, especially to the Middle-East, and may explore wide-body operations for Asia-to-Europe connectivity in the future.

At 3:30 PM, the shares of SpiceJet closed 4.13% higher at Rs 84 on NSE.

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