SpiceJet Stocks See Buying on Fundraising News
On the second day in a row the SpiceJet stocks zoomed after the news that on June 30th Board Meeting plans for raising funds will be discussed and approved. On June 29, the SpiceJet shares saw around 4 per cent jump to an intraday high of Rs 82.60 on BSE. Yesterday, the stocks had gained around 2 per cent.
The company recently said that the Board of Directors of SpiceJet in its meeting scheduled on Wednesday, June 30th, will discuss and consider, inter alia, options for raising fresh capital through the issue of equity shares/debt instruments on preferential/qualified institutions placement basis, in accordance with the relevant provisions of applicable law.
"It is subject to the approval of the shareholders of the company and receipt of applicable regulatory approvals, as may be required," the company said in a statement.
The stock ended 3.45 per cent higher at Rs 82.40 against the previous close.
The airline sector is expected to bounce back as more population gets vaccinated and travel restrictions ease up. While market leader IndiGo Airlines and GoFirst (earlier GoAir) have already announced their fund raising plans, the defunct full service carrier Jet Airways is also getting ready for the skies under a new owner having got the necessary approvals from the National Company Law Tribunal last week.
With air traffic expected to gradually increase across all major cities, most domestic carriers are using the current period to bolster the business by infusing funds, both for reducing any debt burden and for augmenting capacities both in terms of adding new aircrafts and trained manpower.
