Spicejet share price plunged up to 3 per cent on Monday after reports that airline mulls to raise Rs 750 crore through QIP amid the liquidity crunch.
SpiceJet share price plunged up to 3 per cent on Monday after reports that airline mulls to raise Rs 750 crore through QIP amid the liquidity crunch. The stocks fell 3.4 per cent to Rs 106.05 on NSE from the previous close of Rs 109.65. However, the company denied the reports. “The company does not have any plan to come with any qualified institutional placement (QIP) at this time,” the low-cost airline SpiceJet said in an exchange filing. SpiceJet shares recovered from the fall in the early trade and were trading at Rs 112.60, up 2.95, or 2.69 per cent on NSE at the time of reporting.
The losses at low-cost airline SpiceJet widened to Rs. 463 crore for the quarter ended September 2019, impacted by higher costs and a seasonally weak quarter. SpiceJet’s losses were higher than street expectations; analysts tracked by Bloomberg had estimated a Rs. 328-crore loss for the budget carrier in Q2FY20. The company had reported a loss of Rs. 389 crore in Q2FY19 over high fuel costs, rupee depreciation and intense competition leading to low fares. The carrier has a fleet of 118 planes and on average operates 630 flights daily.
Meanwhile, the major stock market benchmark BSE Sensex jumped over 200 points in early intra day trade on Monday tracking gains in index-heavyweights such as Infosys, Reliance Industries and Bharti Airtel amid positive cues from global equities. The 30-share index was trading 213.78 points, or 0.53 per cent, higher at 40,573.19. Similarly, the broader NSE Nifty rose 57.65 points, or 0.48 per cent, to 11,972.05. On Friday, the Sensex ended 215.76 points, or 0.53 per cent, lower at 40,359.41. The Nifty settled 54 points, or 0.45 per cent, down at 11,914.40.