SpiceJet gains on completing hive off of cargo and logistics division `SpiceXpress` into separate entity
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SpiceJet is currently trading at Rs. 30.95, up by 0.64 points or 2.11% from its previous closing of Rs. 30.31 on the BSE.
The scrip opened at Rs. 30.80 and has touched a high and low of Rs. 31.14 and Rs. 30.67 respectively. So far 137112 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 62.20 on 05-Apr-2022 and a 52 week low of Rs. 29.75 on 28-Mar-2023.
Last one week high and low of the scrip stood at Rs. 32.29 and Rs. 29.75 respectively. The current market cap of the company is Rs. 1862.71 crore.
The promoters holding in the company stood at 59.39%, while Institutions and Non-Institutions held 0.66% and 39.95% respectively.
In a bid to boost the growth of its cargo business and provide a more streamlined and efficient service to its customers, SpiceJet has completed the hive off of its cargo and logistics division ‘SpiceXpress’ into a separate entity, SpiceXpress and Logistics.
The hive off is effective April 1, 2023 and paves the way for SpiceXpress to raise funds independently. The hive off would strengthen SpiceJet’s balance sheet, wipe out a substantial portion of the company’s negative net worth and unlock significant value for the company and its shareholders.
The consideration for the slump sale shall be discharged by SpiceXpress by issuance of securities in the combination of equity shares and compulsorily convertible debentures to SpiceJet for an aggregate amount of Rs 2,555.77 crore which will also strengthen the balance sheet of SpiceJet.
SpiceJet is among the first private companies that stepped into the Indian aviation sector.
