SpiceJet, the Indian airline operator, saw a sharp decline of nearly 10 percent in its shares, dropping to Rs 54.6 per share on March 12. Reports indicated that the Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia have submitted their resignations.
Over the past month, the airline’s stock has fallen by 13 percent, in stark contrast to the 3 percent increase in the benchmark Sensex. Earlier this year, SpiceJet shares had surged to a 52-week high of Rs 77 apiece on February 5, 2024.
In an exchange filing dated March 11, the company disclosed the approval and issuance of 34.66 lakh shares, each with a face value of Rs 10, priced at Rs 50 per share to Elara India Opportunities Fund, amounting to Rs 17.33 crore.
As of 10:15 am, SpiceJet shares were trading 5.33% lower at ₹57.35.
Furthermore, on January 25, 2024, SpiceJet had allocated an initial portion of equity shares and warrants, raising Rs 744 crore. Elara India Opportunities received 8.33 crore warrants at Rs 50 per warrant in that allocation, with only 4.16 percent of these warrants converted into shares. SpiceJet also allotted 1 crore warrants at the same price to Silver Stallion.
Recently, SpiceJet secured an additional fund raise of Rs 316 crore, bringing its total funds raised to Rs 1,060 crore through a preferential share issue. This capital injection follows the airline’s announcement of downsizing its workforce by 10-15 percent earlier this year.
