SpiceJet Shares Rise 52-Week High As Airline Confirmed Interest In bidding For Go First

The SpiceJet board has also approved and initiated the process of raising fresh capital of $270 million to strengthen the carrier's financial position and provide resources to invest in growth plans

SpiceJet said the move will help create a strong and viable airline with the combination of Go First and SpiceJet. ( Image Source :Getty )

SpiceJet shares jumped nearly 8 per cent to hit a 52-week high of Rs 64.21 on Tuesday after the airline confirmed its interest in bidding for the bankrupt Go Airlines (India) Ltd, known as Go First. At 10.10 am, shares of SpiceJet were trading 6.2 per cent higher at Rs 68.19 on the NSE. According to SpiceJet, the move will help create a strong and viable airline with the combination of Go First and SpiceJet.

As per news reports, the request for bidding came in after the deadline for submitting proposals passed and with lenders considering the possibility of liquidating the airline. Crisis-hit Go First, owned by the Wadias, filed for voluntary insolvency before the National Company Law Tribunal (NCLT) in May.

The SpiceJet board has also recently approved and initiated the process of raising fresh capital of about $270 million to strengthen the low-cost carrier's financial position and provide resources to invest in growth plans.

SpiceJet has said it has expressed interest to acquire Go First and plans to submit its offer after carrying out due diligence of the bankrupt carrier. Go First, which stopped flying since May 3 amid financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process.

In a regulatory filing, SpiceJet said it "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".

The no-frills airline, which is grappling with financial headwinds, last week announced raising around $270 million from various investors. "The Board of the Company has recently approved and initiated the process of raising fresh capital of about $270 million to strengthen its financial position and provide resources to invest in growth plans," the filing said on Tuesday.

Shares of SpiecJet closed at Rs 65.40, apiece, up 1.85 per cent on the BSE on Tuesday.