Shares of SpiceJet surged 6.3% to a high of Rs 42.20 in intraday trade on the BSE on Monday after the low-cost carrier’s board approved a share issue worth $29.5 million to Carlyle Aviation Partner as part of a proposed restructuring plan.

The stock was up 3% at Rs 40.90 at 1 pm, with about 18.36 lakh shares traded compared with the BSE’s two-week average of about 7.8 lakh shares. Meanwhile, the S&P BSE Sensex fell 0.6% to 59,109.

According to a press release issued by the company to the BSE, SpiceJet will issue shares in preference to aircraft lessors such as Carlyle at a minimum price of Rs 48 per share.

SpiceJet’s board has also agreed to enter into a business transfer agreement with its subsidiary, SpiceXpress and Logistics Private Limited (SXPL), to transfer its continuing cargo business on a discount sale basis.

SXPL will pay the consideration for the said transfer of the trucking business by issuing a combination of equity and compulsory convertible debentures (CCD) securities totalling Rs 2,555.77 crore.

Also, the company’s board has approved a proposal to raise Rs 2,500 crore within a year.

The release said the restructuring would significantly reduce the company’s existing liabilities and help finance the company’s business operations.

The company on Friday reported a five-fold jump in net profit to Rs 107 crore in the December 2022 quarter from Rs 23.28 crore a year earlier. Total revenue rose 4.3% to Rs 2,794 crore from Rs 2,679 crore. The stock surged more than 12% on Friday after the results were released.