FIIs Bought 26,99,23,000 Shares: Airline Stock Under Rs 60 In Green As Company Settles USD 4.50 Million Dispute with Shannon Engine Support Ltd
The stock is up by 70.3 per cent from its 52-week low of Rs 34 per share.
SpiceJet Ltd announced that it has successfully settled a USD 4.5 million dispute with Shannon Engine Support Limited (SES) for an aggregate sum of USD 2 million. Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom. As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums.
This settlement follows three other significant financial agreements by SpiceJet in recent weeks. On October 15, SpiceJet announced it had successfully settled a $USD 23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited for an aggregate sum of USD 5 million. On October 9, the airline successfully resolved a USD 131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. (under the management of Babcock & Brown Aircraft Management) for $22.5 million. Before that, on September 24, the company had settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed USD 16.7 million, for a lower amount
Furthermore, SpiceJet has successfully exited the enhanced surveillance regime imposed by the DGCA on September 13, 2024. Following 266 spot checks and the rectification of identified deficiencies, the DGCA determined that SpiceJet has met the necessary safety and operational standards.
About the Company
Today, shares of SpiceJet Ltd gained 3.11 per cent to Rs 57.38 per share from its previous closing of Rs 56.15 per share with a spurt in volume by more than 1.1 times on BSE. The stock is up by 70.3 per cent from its 52-week low of Rs 34 per share.
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SpiceJet is India's favourite airline that has made flying affordable for more Indians than ever before. SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s & Q-400s and is one of the country's largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline's fleet offers SpiceMax, the most spacious economy-class seating in India.
According to Quarterly Results, the company reported net sales of Rs 1,708 crore, operating profit of Rs 49 crore and net profit of Rs 158 crore in Q1FY25. In its annual results, the company reported net sales of Rs 7,085 crore, an operating loss of Rs 644 and a net loss of Rs 424 crore in FY24.
The company has a market cap of over Rs 7,000 crore. According to the shareholding pattern of September 2024, FIIs bought 26,99,23,000 shares or a 21.06 per cent stake and increased their stake to 22.87 per cent compared to 1.81 per cent in June 2024. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.