Shares of SpiceJet Ltd. rose over 5% on Friday after announcing that it would hold a meeting of the board of directors on July 23 to consider raising of fresh capital.
The fundraise may be through an issue of eligible securities to qualified institutional buyers by way of qualified institutional placement and any other methods, including by way of further issue. It is subject to the approval of the shareholders of the company and other regulatory and contractual approvals according to an exchange filing.
On Monday, the airline posted a net profit of Rs 127 crore in the January–March quarter in comparison to a loss of Rs 6.2 crore in the same period a year ago.
SpiceJet's stock rose as much as 5.41% during the day to Rs 58.27 apiece on the BSE. It was trading 2.06% higher at Rs 56.42 per share, compared to a 0.36% decline in the benchmark Sensex at 10:56 a.m.
The share price has risen 89.89% in the last 12 months but fell 6.08% on a year-to-date basis. The relative strength index was at 55.06.
Two out of the four analysts tracking SpiceJet have a 'hold' rating on the stock, one recommends 'buy' and another suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 9.9%.
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