SpiceJet share price today: Shares of low-cost carrier SpiceJet Ltd rose 3% on Wednesday morning after the airline said it was looking to raise funds and ahead of a board meeting to consider Q4FY22 results. SpiceJet chairman and chief executive Ajay Singh said the airline was looking to raise funds to the tune of Rs 2,000 cr. Shareholders of SpiceJet, which is a listed company, have approved a fundraising of Rs 1,500 to Rs 2,000 crore, and some of the amounts have already been raised, he said.
Singh also said that he was doing everything possible to overcome the stress he was facing and the strategy was to collect resources.
“We are doing this through the government-supported ECLGS program, getting new planes from Boeing and so through the SLB process, exploring fundraising options…we are exploring all options,” he said. said the president of SpiceJet.
The national airline is looking for several ways to raise funds, including government loan programs, equity investments or share sales.
Without divulging specific details, Singh said the carrier will do everything to ensure it remains a strong and vibrant player.
Earlier in the month, a news report claimed the low-cost airline was in talks with a Middle Eastern carrier for a possible stake sale. In a clarification of the exchanges, SpiceJet had said that “the company continues to explore various means of raising funds to meet its business needs, subject to compliance with prescribed procedures and receipt of applicable approvals”.
In addition, a meeting of the Company’s Board of Directors would be held on August 31, 2022 to review and approve the individual and consolidated audited financial results for the fourth quarter and year ended March 31, 2022, as well as the unaudited financial results. individual and consolidated audited for the first quarter ended June 30, 2022.
Should you invest?
“The Indian aviation industry is on the cusp of exponential growth over the next two decades owing to its demographic advantages, potential growth in middle class incomes, increase in business travel, the reduction in the cost of air travel and the increase in Tier-2 and Tier-2 travel. -3 destinations. However, being a commoditized industry, big players with high market share, low cost and scale advantages will be the winners. Therefore, we recommend investors to go with industry leaders like InterGlobe Aviation Ltd rather than investing in marginalized and financially stressed players like SpiceJet Ltd. said Punit Patni, Equity Research Analyst, Swastika Investmart Ltd.
Manoj Dalmia, Founder and Director of Proficient Equities Limited, said: “Investors can accumulate at current levels as they approach a support zone and hold it from a long-term perspective. Good moves can be expected as the short-term target of Rs 62 can be reached by buying.
Ravi Singh, VP and Head of Research-ShareIndia, said: “Spicejet stock price is trading in an overbought zone with limited upside movement around 52 levels amid plans to collect funds. However, the airline is already facing several restrictions from the DGCA due to its technical glitches in recent days. Investors can take advantage of this opportunity to exit their holdings and avoid further long positions at current levels.
Disclaimer: The views and investment advice of the experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before making any investment decision.
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