SpiceJet share price decline up to 6%. Launches a QIP to raise ₹3000 crore for which floor price is at ₹64.79

Stock Market today: SpiceJet Limited share price declined up to 6.35% in morning trades on Tuesday. SpiceJet Ltd is raising ₹3000 crore funds through a QIP

Th SpiceJet share price opened at ₹74.90 on the BSE on Tuesday, 3.7% lower than the previous close of ₹77.79 . The SpiceJet share price thereafter declined to intraday lows of ₹72.85, more than 6% lower than the previous close.

The SpiceJet share price had risen and almost doubled in a year prior to today's correction.

SpiceJet Ltd the Indian aviation carrier, has initiated a Qualified Institutional Placement with the objective of raising capital through the sale of shares to qualified institutional investors. As per the company release the floor price of ₹ 64.79 had been set for each Equity Share, calculated in accordance with Chapter VI of the SEBI ICDR Regulations.

Spice Jet said that it may offer a discount on the Floor Price in accordance with the approval of our Board dated July 23. 2024 and the Shareholders by way of special resolution.

A CNBC TV-18 report suggests that SpiceJet aims to raise up to ₹3,000 crore through the QIP, where the base size of the issue is said to be ₹1,500 crore, with a green shoe option of another ₹1,500 crore. Also referring to sources, CNBC TV18 report suggested that QIP is said to be at ₹61.6 per share, which is a 20.8% discount to Monday's closing price on BSE.

Not surprising the SpiceJet share price has corrected significantly on Tuesday.

SpiceJet a few days back had announced that it has made a Restructuring and Settlement with Carlyle Aviation where Carlyle Aviation planned to purchase SpiceJet shares in order to settle a portion of its outstanding debt, which amounts to $137.68 million. The restructuring operation would result in a reduction of SpiceJet's debt to $97.51 million with the conversion of $40 million of Carlyle Aviation's debt into equity.

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