SpiceJet shares: After taking a pause on Tuesday, SpiceJet share price today witnessed buying interest in early morning session. The aviation stock today opened upside and went on to touch intraday high of ₹59.85 apiece levels on NSE, just 6 per cent away from the 52-week high of ₹63.69 per share. However, profit booking triggered again in SpiceJet shares and the stock made an intraday low of ₹55.70 per share on NSE. Currently, SpieceJet share price is quoting ₹57.15 per share.
According to stock market experts, SpiceJet has raised to the tune of ₹2,250 crore from issuance of warrants and preferential shares. This is expected to turnaround the financial condition of this crisis-hit aviation company. SpiceJet allotted these shares and warrants on preferential basis at ₹50 per equity share. This means, investors are already getting around ₹7 per share or 14 per cent premium against their preferential share allotment. So, it’s a win-win for both investors and the aviation company.
Also Read: DOMS IPO: GMP, date, subscription status, review, other details. Apply or not?
Stock market experts went on to add that successful fund raise is expected to fuel SpieceJet shares, which has already ascended over 50 per cent in last one month. They advised SpiceJet shareholders to hold the stock for near term target of ₹70 maintaining stop loss at ₹50. Fresh investors can also maintain buy on dips strategy for ₹70 target, maintaining stop loss at ₹50.
Why SpiceJet shares are skyrocketing?
On triggers that has enabled SpiceJet shares to maintain uptrend, Saurabh Jain, Vice President — Research at SMC Global Securities said, “SpiceJet has raised around ₹2,250 crore through issuance of equity shares and warrant on preferential basis. This has fueled market sentiments in regard to SpiceJet shares. Some big names are also figuring in the list of warrants and equity share allottees, which may also work in favour of the aviation company. The company had reported Q2 results below market estimates but this fund raise buzz has helped the stock to undergo trend reversal.”
Also Read: India Shelter IPO: GMP, price, subscription status, other details. Apply or not?
SpiceJet share price target
On outlook for SpiceJet shares, Sumeet Bagadia, Executive Director at Choice Broking said, “SpiceJet shares are looking strong on chart pattern. The stock has been in bull trend for more than a month and it may go up to ₹70 apiece levels in near term, provided the stock manages to sustain above ₹50 support. Those who have this stock in portfolio are advised to hold the scrip for near term target of ₹70 maintaining stop loss at ₹50.”
“Those who want to make fresh entry in SpiceJet shares, they are advised to maintain buy on dips maintaining stop loss at ₹50 for short term target of ₹70,” concluded Sumeet Bagadia of Choice Broking.
SpiceJet news
SpiceJet on Tuesday announced that it will raise more than ₹2,250 crore through the issuance of shares and warrants to 64 entities, including financial institutions and FIIs, a move that will help the carrier to navigate the financial turbulence. On Tuesday, the no-frills airline also reported nearly halving its net loss to ₹428 crore in the latest September quarter compared to the year-ago period.
The board of directors of SpiceJet also approved the issuance of equity shares/equity warrants under a private placement basis to various investors, subject to requisite approvals.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 13 Dec 2023, 11:33 AM IST