Shares of SpiceJet were on focus on July 13, a day after the company announced that Ajay Singh, the promoter of the beleaguered airline, will infuse ₹500 crore to strengthen the financial position of the company. Following the development, shares of SpiceJet surged as much as 7.5% to hit an intraday high of ₹33.50 apiece on the BSE.

The scrip opened a gap-up at ₹33, up 5.9%, as against the closing price of the previous session at ₹31.16. At the time of reporting, the share price of SpiceJet was up 1.89% at ₹31.75. At present, shares of the beleaguered airline are trading 56.4% lower than the 52-week high of ₹52.40, which the airline touched on August 3 last year. The share price of SpiceJet is trading 38.3% higher than the 52-week low of ₹22.65 which the company touched on May 23, this year. During the session, the company’s market capitalisation stood at ₹1,890 crore, with more than 52.42 lakh shares exchanging hands on the BSE, as against the two-week average of 28.45 lakh shares.

According to the regulatory filing by the company, the promoter of the company will infuse ₹500 crore by way of subscription to equity shares and/or convertible securities/equity share warrants on a preferential basis.

"The Board of Directors of the Company deliberated on the matter and agreed to issue equity shares and/or convertible securities/equity share warrants on a preferential basis to the Promoter and/or the Promoter Group of the Company, on a preferential basis, in one or more tranches at an issue price to be determined in accordance with the SEBI ICDR Regulations for an amount of ₹500 Crore subject to the approval(s) of the shareholders of the Company, the Securities and Exchange Board of India and/or any other competent authorities and such other approvals, consent, etc. as may be required in this regard," the company says.

"This fundraising shall also be considered as equity contribution by the Promoters of the Company under the Emergency Credit Line Guarantee Scheme (the "ECLG Scheme") of the Government of India which shall provide additional credit facilities of ₹206 Crore to the Company under the ECLG Scheme," it adds.

The development comes amidst reports that the Directorate General of Civil Aviation (DGCA) has put SpiceJet under "enhanced surveillance" for more than three weeks. The airline has, however, refuted the claims.

The low-cost carrier is facing a double-whammy of financial distress over the past several months as well as several of its lessors seeking the possession of aircraft. The Supreme Court last week had directed the budget airline to pay the entire arbitral amount worth ₹380 crore to its former promoter Maran, in the 2018 arbitration award case.

Last month, the Gurugram-based airline said that it plans to induct 10 Boeing  737 aircraft into its fleet beginning September 2023. 

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