SpiceJet Stocks Soar 20% on Upper Circuit Amid Fundraising Surge.

Published : 07 December 2023

SpiceJet shares hit 20% upper circuit

SpiceJet's stock jumped 20% to reach a 52-week high of Rs 52.29 a share on December 7 after the firm announced that its board will meet on December 11 to discuss options for obtaining additional funding. 

SpiceJet announced that it will convene on December 11 to explore and evaluate options for obtaining additional capital by issuing equity shares or convertible securities on a preferential basis, subject to the approval of the company's shareholders and in compliance with applicable laws.

Announcement by SpiceJet

This comes after aircraft lessor Willis Lease Finance submitted a request to begin bankruptcy proceedings against the airline over unpaid dues, but the National Company Law Tribunal (NCLT) rejected it.

Insolvency pleas against SpiceJet

In 2023, four insolvency petitions for non-payment of dues were filed against SpiceJet by about three aircraft lessors.  An IT services company has filed an insolvency plea against the airline in addition to the lessors.

Operational issues suffered  by SpiceJet

SpiceJet has experienced operational problems all throughout India, recently causing flight services to be delayed at airports in Pune, Patna, and New Delhi.