SpiceJet zooms 29% in two days on plans to acquire bankrupt Go First

As per reports, SpiceJet is among the three entities that have shown late interest in acquiring bankrupt carrier Go First. The other two are Sharjah-based Sky One and Africa-based Safrik Investments.

Shares of SpiceJet hit a fresh 52-week high at Rs 69.20, as they rallied 8 per cent on the BSE in Tuesday's intra-day trade after the airline showed interest in acquiring bankrupt carrier Go First. In the past two trading sessions, the stock of the airline has zoomed 29 per cent. In the past one month, it has skyrocketed 82 per cent, as compared to 8.3 per cent rise in the S&P BSE.

In an exchange filing SpiceJet today said that it has expressed interest with the Resolution Professional of Go First and wish to submit an offer post diligence, with a view of creating a strong and viable airline in a possible combination with SpiceJet.

The Board of the Company had recently approved and initiated a process of raising fresh capital of about $270 million to strengthen its financial position and provide resources to invest in growth plans, SpiceJet said.

SpiceJet is among the three entities that have shown late interest in acquiring bankrupt carrier Go First. The other two entities are Sharjah-based Sky One and Africa-based Safrik Investments, as per media reports.

Meanwhile, last week SpiceJet's board had approved fund raise of Rs 2,250 crore in fresh capital from 64 entities, including financial institutions, foreign institutional investors, high-net-worth individuals, and private investors, through the issuance of equity shares and warrants. The airline has been facing a cash crunch for the past several quarters.

In a statement to BSE, the airline said it will issue 320 million shares and 130 million warrants to the 64 investors.

They include Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher and Resonance Opportunities Fund for raising Rs 2,250 crore. The issue price will be Rs 50 per equity share/warrant.

SpiceJet also said it will soon be listing its securities on the National Stock Exchange (NSE). In a regulatory filing, it said, "In order to reach a wider investor base, the company shall soon be listing its securities on the National Stock Exchange of India Limited".