SpiceJet Seeks Members' Nod To Raise Up To Rs 2,500 Crore Via QIP
SpiceJet has sought approval of members to raise up to Rs 2,500 crore via QIP.
SpiceJet Ltd. sought approval of members of the company to raise funds by issue of eligible securities through qualified institutions placement.
The carrier aims to raise up to Rs 2,500 crore through this route, according to an exchange filing.
Besides, SpiceJet has sought approval for transfer of cargo and logistics business to its logistics unit SpiceXpress & Logistics Pvt. on a slump sale basis, the filing said. The subsidiary is valued at nearly Rs 2,560 crore and covers 68 domestic and more than 110 international destinations, including the U.S., Europe and Africa.
The logistics arm reported a profit of around Rs 30 crore for the quarter ended June, and its revenue stood at Rs 470 crore.
SpiceJet has posted an overall loss of Rs 731 crore in the quarter ended June. "Expectations of the new Akasa airline, continued impact of Covid in international sectors, and rising fuel prices remain overhangs in the near term," ICICI Securities said. The brokerage maintained its 'hold' rating on the airline but cut its target price from Rs 85 to Rs 71.
The carrier, according to ICICI Securities, had a negative net worth of Rs 3,300 crore as of June. "If compensation from Boeing is unrealised, this will be lower."
Shares of SpiceJet gained as much as 3.4% to Rs 71 apiece as of 10:30 a.m. on Tuesday. Of the nine analysts tracking the company, one has a ‘buy’ rating, while four each suggest a ‘hold’ and a ‘sell’, according to Bloomberg data. The stock has declined 26.5% so far this year compared with the S&P BSE Sensex’s 17.3% gain.