SpiceJet share price up by nearly 3% ahead of board meeting

shares of spicejet were up 2.83% 36.35 on BSE. Airline stocks have declined more than 40% in a one-year period.

The company said in an exchange filing on Tuesday that the board will consider issue of equity shares on a preferential basis and conversion of outstanding liabilities in its board meeting on Friday, February 24, 2023. The company will also consider raising fresh capital by issuing securities to qualified institutional buyers.

“You are hereby informed that the Board of Directors of the Company at its meeting to be held on February 24, 2023 (Friday) will, inter alia, discuss and consider issue of equity shares on a preferential basis consequent to the conversion of outstanding liabilities in the equity shares of the company, subject to applicable regulatory approval,” domestic airline, spicejet reported in an exchange filing.

Mint reported yesterday that the company is likely to sell 5% stake in the airline to its largest lessee US-based Carlyle Aviation Partners.

The airline was in discussion with strategic investors since last year for stake sale to bring in capital. Mint reported that under the proposed deal, Carlyle is expected to convert over $100 million outstanding balance in SpiceJet into equity and compulsorily convertible debentures (CCDs) in cargo arm SpiceXpress.

The proposed transaction has been evaluated spicejetSpiceXpress, a logistics subsidiary of India, has signed a deal worth over $1 billion with Carlyle.

SpiceJet is yet to announce its earnings for the third quarter ended December 2022 (Q3 FY23). However, it posted a consolidated net loss 833 crore for the quarter ending September 2022 as compared to a loss of Rs. 570.5 crore in the year-ago quarter. Consolidated revenue from operations increased by 45% since 1954 cr 1345 crore in the year-ago period.