22, February, 2024
HomeBusinessSpiceJet Shares Surge 4% as NCLT Dismisses Insolvency Petition

SpiceJet Shares Surge 4% as NCLT Dismisses Insolvency Petition

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SpiceJet witnessed a remarkable surge in its shares, soaring over 4% during early trade today and reaching a two-week high. This significant uptick followed the dismissal of an insolvency petition against the budget airline by the National Company Law Tribunal (NCLT).

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The insolvency plea, filed by Wilmington Trust SP Services in June over unpaid dues, was officially rejected on Monday, as confirmed by an exchange filing. Notably, other aircraft lessors, including Aircastle Ireland, Willis Lease, and Celestial Aviation, have also filed insolvency pleas against SpiceJet, with the NCLT currently issuing notice only on Aircastle’s petition.

This positive development in the dismissal of the insolvency plea has contributed to SpiceJet’s overall performance growth. On the Bombay Stock Exchange, SpiceJet’s stocks witnessed a significant climb of 4.68%, reaching Rs. 67.30 apiece, marking its highest value since January 12. Over the past year, the share price has seen a substantial increase of 92%. The day’s total traded volume was 1.6 times its 30-day average, with a relative strength index of 61.06.

In addition to the positive market response, SpiceJet’s stock performance received an additional boost from fresh funding secured yesterday.

The airline experienced a 4.5% surge in stocks as it successfully raised over Rs. 900 crore in funding. This financial boost is a crucial step for the airline, which has been grappling with financial challenges.

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Of the total Rs. 2,250 crore sourced through the issuance of securities on a preferential basis, Rs. 744 crore has been received, including a Rs. 160 crore installment from the government’s Emergency Credit Line Guarantee Scheme (ECLGS).

As of 2:52 pm, SpiceJet’s stocks continued to trade positively at Rs. 65.22 apiece, reflecting a 1.47% increase since yesterday. Analyst sentiment remains positive, with one analyst advocating a ‘buy’ rating on the stock, while three recommend a ‘hold.’

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