SpiceJet Share Price Today: Shares of SpiceJet surged as much as 5.5 percent in early trade on September 9 after the company announced plans to issue shares to Carlyle Aviation as part of a restructuring deal to convert a portion of its dues into equity.
“Please note that SpiceJet Limited and Carlyle Aviation Management Limited have entered into a term sheet to restructure certain aircraft lease obligations of SpiceJet aggregating to USD 137.68 million, which upon settlement/waivers will be adjusted to USD 97.51 million,” said the company in its filing to the exchanges.
Part of the outstanding lease arrears ($137.68 million), which is adjusted to $97.51 million are proposed to be restructured through the issuance/purchase of securities under the agreement.
The leasing firm which has the largest exposure among other lessors of around 8 Boeing 737 has valued the airline’s share at Rs 100 per equity share. This is at a significant premium than the current share price of the airline which closed at Rs 61.46 on the Bombay Stock Exchange, or 2.4% lower, on Friday.
Additionally, Carlyle will also consider purchasing a stake in SpiceXpress & Logistics, the cargo arm of the company via compulsorily convertible debentures.
Further, a report by PTI also suggested that SpiceJet promoter and chairman Ajay Singh was looking to trim more than 10 percent of his stake in the low-cost carrier. The report added that Singh could also sell up to 15 percent stake if market conditions remain favourable. As per SpiceJet’s latest shareholding data, Ajay Singh owned a 37.57 percent stake in the company.
The stake sale by promoter was likely part of a fresh round of funding for the airline, expected to close by the end of September.
The airline, embroiled in financial difficulties, legal issues and downsized fleet, is seeking to raise funds to meet its obligations. The PTI report also mentioned that the funds are expected to be utilised for bringing grounded aircraft back into service, settling liabilities, and inducting new aircraft into the fleet, along with other general corporate needs.
Meanwhile, the airline aimed for a ‘promising future’, riding on hopes of ungrounding of aircraft, fleet expansion, and exclusive access to both regional and international destinations as per its recently released annual report.
Despite grappling with significant financial dues and grounded aircraft that have severely slowed operations, SpiceJet aims to unground 28 of its aircraft, effectively doubling the operational capacity. In the investor presentation, the company revealed that its fleet size has shrunk from 74 aircraft in 2019 to just 28 in 2024, with 36 aircraft grounded due to financial constraints and funding issues.
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