SpiceJet jumped 7.60% to Rs 18.40 at 12:10 IST on BSE, extending Tuesday's 3.32% rise triggered by the company announcing that it is in advanced talks with an unnamed investor to raise funds.
Meanwhile, the BSE Sensex was down 70.31 points, or 0.29%, to 24,306.57.
On BSE, so far 82.70 lakh shares were traded in the counter, compared with an average volume of 31.32 lakh shares in the past one quarter.
The stock hit a high of Rs 18.80 and a low of Rs 17.35 so far during the day. The stock hit a 52-week low of Rs 12.50 on 4 March 2014. The stock hit a 52-week high of Rs 40.20 on 21 May 2013.
Shares of SpiceJet rose 3.32% to Rs 17.10 on Tuesday, 20 May 2014. The stock has risen 11.18% in two trading sessions from Rs 16.55 on Monday, 19 May 2014.
The stock had underperformed the market over the past one month till 20 May 2014, rising 0.47% compared with 7.72% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 23.91% as against Sensex's 18.70% rise.
The small-cap company has an equity capital of Rs 535.28 crore. Face value per share is Rs 10.
SpiceJet on Tuesday, 20 May 2014, said that the company is in advanced talks with an unnamed investor to raise funds. Some of the cash raised would be allocated to paying down debt, though the company didn't elaborate on the amount or how it would be allocated. SpiceJet also said that existing plans to increase revenue and cut costs are just starting to take effect, and will intensify in the coming days.
"The past nine months have been some of the worst for the Indian aviation industry," the carrier said on Tuesday, 20 May 2014, citing the sluggish Indian economy for crimping demand and the rupee's slide against the dollar for increasing costs. In March 2014, SpiceJet ordered 42 Boeing 737-8 Max Jets for $4.4 billion.
A foreign airline can start a new airline with a 49% stake in an Indian company that is 51% owned by local investors, the government announced in September 2012 as part of a liberalization drive. Earlier, foreign airlines were not allowed to pick up equity in aviation companies, while foreign investors and financial institutions could hold up to a 49% stake.
SpiceJet reported net loss of Rs 321.51 crore in Q4 March 2014, higher than net loss of Rs 185.71 crore in Q4 March 2013. Total income from operations rose 8.37% to Rs 1589.61 crore in Q4 March 2014 over Q4 March 2013.
SpiceJet is India's low fare airline. As on 31 March 2014, promoters held 53.48% stake in SpiceJet.
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