Indian benchmark indices have kicked off the fresh week on a buoyant note with Nifty and Sensex trading up by 0.38% and 0.43%, respectively.
The broader markets are also witnessing buying interest in the early deals with Nifty Midcap and Smallcap, trading higher by 0.38% and 0.29%, respectively.
Talking about airline stocks, they have been in the limelight recently, after Go First bankruptcy, however, amidst this crisis in the sector, there is one stock which is seen buzzing on the bourses on Monday, i.e. SpiceJet Ltd.
The stock is trading higher by 2% and it is trading above the level of Rs 30 on Monday after the company made a noteworthy announcement. The announcement states that United Kingdom‐based SRAM & MRAM Group will invest USD 100 million in SpiceXpress and Logistics Pvt. Limited. Both sides have signed a MoU as part of the investment deal.
SpiceJet Ltd. recently completed the hive off ‘SpiceXpress’ into a separate entity effective April 1, 2023 paving the way for the Company to raise funds independently.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “SpiceXpress is delighted to enter into a MoU with SRAM & MRAM Group for a USD 100 million investment into the Company. We had recently hived off SpiceXpress into a separate Company as we were extremely confident and bullish about the potential of our tech‐enabled logistics business and this MoU reaffirms our belief. This investment should help SpiceXpress to further grow and expand and provide a more streamlined and efficient service to its customers.”
The MoU with SRAM & MRAM Group follows a restructuring agreement with aircraft lessor Carlyle Aviation Partners wherein the latter picked up a stake in SpiceXpress at an anticipated future valuation of USD 1.5 billion or Rs 12,422 crore.
The stock of SpiceJet is down by 18% on YTD basis, can this announcement change the fortune for this airline stock? Only time will tell but certainly in the short term the market participants are excited about this news.