SpiceJet experienced a robust rally in the stock market on Tuesday. The company’s shares climbed more than 9 per cent after it announced plans to induct 10 new aircraft into its fleet by November end.
The announcement comes as the airline tries to make tremendous changes following a major fundraise of Rs 3,000 crore. As of 11:06 AM, the firm’s shares traded at Rs 62.6 apiece, and hit an intraday high of Rs 63 per share during the day.
By the end of the session, the company stood at Rs 62.80 per share in the market, clocking a jump of 9.10 per cent in the stock price. As part of its efforts to clock a recovery, the airline plans to expand its fleet with seven leased aircraft and reintroduce three grounded planes, reported Moneycontrol.
SpiceJet further informed that two of the leased planes have already reached India and will be made a part of the fleet on October 10. The indictment of all the aircraft is expected to be completed by mid-November.
Ajay Singh, Chairman and Managing Director, SpiceJet, noted, “This addition is crucial as we continue to meet the growing demand for air travel while strengthening our operational capabilities. With the capital raised, SpiceJet is well-positioned to offer improved services and an expanded route network.”
Notably, the airline raised Rs 3,000 crore in September through Qualified Institutional Placement (QIP). These funds are set to play a crucial role in the carrier’s financial recovery and will allow the company to clear outstanding dues and provide support to its operational growth.
Apart from the QIP, the carrier is also set to receive Rs 736 crore through an earlier funding round. In the last year itself, the company has seen a major comeback in the stock market and yielded returns of more than 80 per cent. Its market capitalisation stands near Rs 8,000 crore.