SpiceJet shares surge over 10% after raising Rs 3,000 crore through QIP

Shares of SpiceJet soared 10.03 per cent to an intraday high of Rs 72.8 apiece on Monday, following the airline's successful Qualified Institutional Placement (QIP) that raised Rs 3,000 crore. The domestic carrier announced that the QIP, which opened on September 16 and closed on September 18, saw overwhelming investor interest, leading to significant oversubscription.

SpiceJet’s latest fundraising effort attracted a diverse range of top-tier institutional investors and mutual funds, including well-known names like Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Ltd ODI, Tata Mutual Fund, and Discovery Global Opportunity Ltd. The strong response reflects growing confidence in the airline's growth potential, especially as India’s aviation sector continues to expand.

In addition to the Rs 3,000 crore raised through the QIP, SpiceJet is set to receive an additional Rs 736 crore from a previous funding round, further strengthening its financial position.

SpiceJet stated that the new capital infusion will be deployed to operationalise grounded aircraft, acquire new planes, invest in technology, and expand its operations into new markets. These investments are expected to improve its operational capacity and allow the airline to better meet the increasing demand in India's rapidly growing aviation industry.

Ajay Singh, Chairman and Managing Director of SpiceJet, expressed optimism about the company’s future: “The strong response from investors and institutions is a testament to their faith in SpiceJet's potential to rapidly scale and become a formidable player in India’s burgeoning aviation market.”

The airline's financial stability and growth plans have positioned it to strengthen its fleet, enhance its network, and improve passenger services. With the fresh capital infusion, SpiceJet is well-prepared to compete in the highly competitive Indian aviation sector, further cementing its position as a leading domestic carrier.

As a result of the positive news, SpiceJet shares surged, reflecting growing investor confidence in the airline's long-term potential. At the BSE, the stock reached an intraday high of Rs 72.8, marking a 10.03 per cent increase from its previous close.