SpiceJet flies to a 52-week high after showing interest in buying Go First

SpiceJet Share Price: Spicejet shares hit a 52-week high on BSE on Tuesday (December 19, 2023) after revealing to the bourses that it was interested in buying embattled Go First and wished to submit an offer post diligence. After such a sharp rise, the BSE put the SpiceJet stock under surveillance of Stage 1.

Zee Business sources had already told the channel that SpiceJet was interested in buying Go First. 

"Please note that SpiceJet Limited (the “Company” or “SpiceJet”) has expressed interest with the Resolution Professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet, said SpiceJet in a statement to bourses on Tuesday.

The SpiceJet board has recently approved and initiated process of raising fresh capital of about US$ 270 million to strengthen its financial position and provide resources to invest in growth plans, SpiceJet further said.

What SpiceJet sources told Zee Business

• Bidding for GoFirst is a strategic masterstroke by Ajay Singh
• It positions SpiceJet for significant growth in the aviation industry
• With its grounded planes already returning to service, the SpiceJet-GoFirst combined entity could target a market share of 22 per cent-25 per cent, making it a formidable player in the Indian aviation market.
• SpiceJet has already outlined a comprehensive revival plan, intending to raise close to Rs 3000 crore through various avenues:
• Rs 2250 crore through the issuance of equity shares.
• Rs 500 crore infusion by the promoter.
• Rs 200 crore from the pending Emergency Credit Line Guarantee Scheme (ECLGS).
• The capital infusion will result in a stronger balance sheet, enabling SpiceJet to access fresh funding at more favourable rates, supporting its growth initiatives.

SpiceJet Share Price

After the development, the stock of SpiceJet hit 52-week high of Rs 69.20 on Tuesday.

The stock closed 2.91 per cent higher, or Rs 1.87, at Rs 66.08 on Tuesday.