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SpiceJet Shares Rise Ahead of Q3 Earnings and Board Meeting

SpiceJet Airlines

SpiceJet's shares surged in early trading on February 24 as reports emerged that Carlyle Aviation Partners, a leasing firm owned by global private equity giant Carlyle Group, may convert over $100 million of SpiceJet's outstanding rental dues into equity. 

As one of the airline's largest lessors, Carlyle's move is expected to significantly reduce SpiceJet's debt and pave the way for future growth. 

Investors welcomed the possible deal, which is being seen as a step towards SpiceJet's financial recovery. 

The airline is scheduled to release its Q3 earnings later in the day and is set to consider raising capital at its board meeting. 

In the September quarter, SpiceJet's net loss widened to Rs 833 crore, while revenue from operations increased by 45 percent to Rs 1,954 crore year-on-year. 

SpiceJet is also reportedly in talks with other creditors to convert dues into equity in a bid to deleverage its balance sheet for expansion.SpiceJet's shares rose on Friday as investors awaited the private sector airline's Q3 financial results for the October-December period, which were due to be released later in the day. 

The stock gained more than four percent to reach Rs 36.8 apiece on BSE. At 10:35 am, SpiceJet shares were trading at Rs 36.6, up 3.4 percent compared to the previous close. 

Although trading volumes were modest, with 2.4 lakh shares changing hands so far on Friday compared to a full-day average of 5.4 lakh in the past two weeks, according to exchange data.

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