SpiceJet stock down by 1% over stake sale news
1 min read . Updated: 23 Feb 2023, 12:29 PM IST
PremiumThe company is likely to sell a 5% stake in the airline to its largest lessor US-based Carlyle Aviation Partners
Low-cost carrier SpiceJet Ltd stocks were down by nearly 1 per cent on the stake sale news.
SpiceJet Limited stock is down 1.4 per cent to ₹35 on BSE at 12:18 pm.
The company is likely to sell a 5% stake in the airline to its largest lessor US-based Carlyle Aviation Partners, said people aware of the development, reported Mint.
The airline had been in discussions with strategic investors since last year for a stake sale to bring in funds. Under the proposed deal, Carlyle is expected to convert over $100 million of outstanding dues into equity in SpiceJet and compulsorily convertible debentures (CCDs) in the cargo arm SpiceXpress, Mint reported.
The proposed deal has valued SpiceJet's logistics subsidiary SpiceXpress at over $1 billion in deal with Carlyle.
The deal is expected to result in significant reduction in debt for the airline and is expected to help SpiceJet to deleverage balance sheet for future expansion, people aware of the matter said.
SpiceJet on Tuesday said that the company will consider issuing equity shares via preferential basis in a board meet on Friday, February 24, 2023. It will mull upon conversion of outstanding liabilities.
The company's board of directors will also discuss and consider options for raising fresh capital through issue of eligible securities to qualified institutional buyers, subject to applicable regulatory approvals, SpiceJet added.
The airline stock has declined more than 40 per cent in a year's period. SpiceJet is yet to announce its quarter ended December 2022 earnings. The company had reported a consolidated net loss of ₹833 crore for the quarter ended September 2022 (Q2) as compared to loss of ₹570.5 crore in the year-ago quarter.
