SpiceJet’s stock fell 17% in Tuesday’s trading, making it now six days in a row that it has lost money. This is due to investors’ cautiousness ahead of the NCLT hearing on the airline’s bankruptcy claim brought by aircraft lessor Aircastle on May 25, which is considered to be a significant risk to SpiceJet’s stock. Nuvama Wealth Finance sold 68.40 lakh Spicejet shares during the day at a price of Rs 24.88, according to bulk trades data available after market hours. This contrasts with the airline counter’s two-week average volume of 28 lakh shares. 1.59 crore shares of SpiceJet were exchanged in total throughout the day.
In addition, investor confidence has already suffered when Go First initiated bankruptcy procedures.
SpiceJet shares fell 17.31% to a low of Rs 23.21 on the BSE. SpiceJet’s stock has fallen for six days in a row. The stock has decreased by 22.90% over the time frame.
As of March 31, SpiceJet promoters controlled 58.98% of the airline. 46.95 percent of the holding out of that total was either pledged or otherwise encumbered.
SpiceJet revealed plans to restart 25 of its grounded aircraft earlier this month. The airline announced on Tuesday that it aims to have four of its grounded aircraft, two Boeing 737s and two Q400s, back in the air by June 15. It stated that more aircraft would resume flight operations in the coming weeks.
“SpiceJet plans to start a slew of flights including two international UDAN flights on the Agartala-Chattogram-Agartala and Imphal-Mandalay-Imphal sectors by June end. The airline also plans to launch a new UDAN flight on Kolkata-Tezpur-Kolkata sector and restart Kolkata-Gwalior-Kolkata and Jammu-Gwalior-Jammu UDAN flights. In addition, SpiceJet will launch flights on Kolkata-Agartala-Kolkata and Kolkata-Imphal-Kolkata sectors and restart flights on Kolkata-Chattogram-Kolkata sector,” the company said.
In the case of peer Go First, the Mumbai-based company’s filing for a “voluntary bankruptcy resolution” with NCLT on May 2 sent the international aviation industry into a frenzy. The company claimed that operational losses had risen due to technical issues with next-generation engines provided by Pratt & Whitney.
According to BT, a number of lessors from all over the world have already filed requests with various Indian courts, including NCLT, NCLAT, and the Delhi High Court, for the recovery of their aircraft assets. Following Monday’s development, it is evident that the Supreme Court of India will host the decisive conflict. The attorneys for the affected leasing firms are anticipated to request an urgent hearing by a vacation bench of the top court.
