SpiceJet Ltd witnessed a nearly 3% surge in its shares on Thursday following the announcement of a strategic partnership between its subsidiary, SpiceXpress and Logistics Pvt Ltd, and Star Air. The collaboration aims to leverage the logistics capabilities of SpiceXpress to manage belly space capacity in Star Air’s fleet of 9 aircraft.
The news sent SpiceJet shares to an intraday high of ₹67.35 per share on the Bombay Stock Exchange (BSE), inching closer to its 52-week high of ₹69.2 per share recorded on December 19, 2023.
In a separate stock exchange filing, the company revealed that its Board of Directors, during the Annual General Meeting held on Wednesday, approved the issuance of 31.83 crore shares at ₹50 per share on a preferential basis. Additionally, the airline obtained shareholders’ approval to raise ₹2,250 crore, following the Board’s earlier sanction. The capital injection will involve the issuance of equity shares and warrants.
SpiceJet’s financial restructuring also includes the issuance of 13 crore convertible warrants at an issue price of ₹50. Carlyle Aviation Partners, a significant investor in the aviation sector, has reportedly expressed interest in SpiceJet. A recent meeting between the President of Carlyle Aviation and SpiceJet CMD Ajay Singh discussed potential strategies and prospects for SpiceJet and its cargo arm, SpiceXpress.
As SpiceJet continues to navigate financial challenges, this partnership with Star Air and the capital infusion signify strategic moves to strengthen the airline’s position in the market. The collaboration with Star Air provides SpiceJet with an opportunity to optimize its cargo operations, a critical aspect in the current aviation landscape.
Shares of SpiceJet were trading at ₹65.99 apiece, up 0.84%, on BSE at 12:31 pm.
