SpiceJet share price BSE: Shares of SpiceJet — the second largest airline in India by number of domestic passengers carried — zoomed on Thursday after the airline's promoter and Chairman Ajay Singh decided to infuse Rs 500 crore into the airline through preference shares, that will help boost budget carrier's financial position as well as tap additional funds from a government scheme.

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The stock opened at Rs 33 and gained as much as 7.5 per cent to touch the day's high of Rs 33.5 from the previous close of Rs 31.16 on NSE. At the time of writing the copy, the stock traded at Rs 32.19 apiece, up by 3.31 per cent on NSE. SpiceJet in a statement said the fresh equity infusion by Singh, who is also the Chairman and Managing Director, will help the carrier in accessing additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS). The board has agreed to "issue equity shares and/or convertible securities/equity share warrants on preferential basis to the promoter and/or the promoter group of the company, on preferential basis, in one or more tranches" for up to Rs 500 crore."

Singh said, "SpiceJet has a bright future and I am committed to helping it achieve its full potential. This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits." SpiceJet had said that Carlyle Aviation Partners would acquire a 7.5 per cent stake in the airline by converting outstanding dues as well as snap up shareholding in the cargo business, a move that will help it reduce debt by USD 100 million in February. The carrier had also announced plans to tap the Qualified Institutional Buyer (QIB) route to raise up to Rs 2,500 crore.

SpiceJet share price target: Should you buy, sell or hold?

HSBC has double Upgraded SpiceJet to hold from reduce and has raised the target to Rs 31.6 from Rs 28.

SpiceJet share price history

SpiceJet's stock has given a negative return of over 20 per cent in the last 12 months (from July 13, 2022). In comparison, the headline index Nifty 50 has rallied nearly 21 per cent.

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