Spicejet trades in green after Carlyle Aviation deal announcement

Spicejet shares surged today to finally close at 4.12% upper at INR 63.99 as compared to its last closing price of INR 61.46. The entire day today SpiceJet was trading in the in the price range of 64.86 & 62.75. Early today morning, as the stoke markets opened, Spicejet shares took an upward climb by 5.5%. at INR 63.65 on the BSE, a 3.56% higher than the previous day’s closing price of INR 61.46. The SpiceJet share price thereafter gained more than 5% to intraday highs of INR 64.86, marking gains of over 5%.

At 09.35 am, shares of SpiceJet were trading at Rs 64.18 on the NSE.

This positivity was on the backdrop of Spicejet’s announcement plans to issue shares to Carlyle Aviation as part of a restructuring deal to convert a portion of its dues into equity.

As a part of the deal, Carlyle Aviation will acquire Spicejet shares worth $137.68 million and thus reduce the airline’s debts by $97.51 million as a part of the restructuring process. About 40 million of Carlyle Aviation's debt being converted into equity.

Going ahead, Ajay Singh, SpiceJet promoter and chairman is planning to trim more than 10%, going up to almost 15% of his stake in the airline. Ajay Singh owns 37.57% stake in the company. This stake sale is a part of fresh round of funding and expected to close by the end of September 2024. 

The airline plans to use these funds to revitalise its operations, bring the grounded fleet back in to service, settle debts as well as induct new aircraft. SpiceJet aims to unground 28 of its aircraft, effectively doubling the operational capacity. In its recent investor presentation, Spicejet revealed that its fleet size has shrunk from 74 aircraft in 2019 to just 28 in 2024, with 36 aircraft grounded due to lack of funds and spares.