Shares of SpiceJet fell by nearly 3% on September 17, as investors booked profits following a rally driven by the airline’s announcement of a Qualified Institutional Placement (QIP) worth up to Rs 3,000 crore. The stock declined after the company opened the QIP at a floor price of Rs 64.79 per share, with the potential to offer a discount on this price.
According to a CNBC-TV18 report, indicative issue price of QIP is fixed at Rs 61.60/sh, which is at a discount of 20.81% to Monday’s close. Though the airline hasn’t declared the size of the QIP, it got board approval to raise Rs 3,000 crore earlier. The entire money that will be raised through this CP issue will go to the books of SpiceJet for operations and debt reduction.
SpiceJet has been working to secure funds to bring more aircraft into service and reduce its debt liabilities.
Shares of SpiceJet traded 2.9% lower at Rs 75.51 apiece on BSE at 9:40 am. This fall has happened despite the fact that the stock has gained over 24% so far this year against 14% rise in the Sensex. In the last one year, SpiceJet shares jumped 98%, almost doubl-ing investors money, whereas Sensex rose 22% in the same period.
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Source: Moneycontrol
News Desk
