FIIs Bought 23.31 Per Cent: Airline Stock Under Rs 70 To Keep Under Radar As Company Is Removed From DGCA’s Enhanced Surveillance

The stock is up by 98.8 per cent from its 52-week low of Rs 34 per share.

SpiceJet Ltd announced that the Directorate General of Civil Aviation (DGCA) has removed the airline from its enhanced surveillance regime. The enhanced surveillance was initiated on September 13, 2024. This decision comes as a testament to our unwavering commitment to maintaining the highest standards of safety, operational efficiency, and regulatory compliance.

As part of the enhanced surveillance, the DGCA conducted a total of 266 spot checks across various locations. “It has been ensured that deficiencies and findings found during the spot checks have been subject to suitable rectification action by the operator. In light of the same and the financial infusion of additional funds into the company, SpiceJet has been taken off the enhanced surveillance regime,” the DGCA said in a media statement.

Team Spicejet Ltd said, “We are grateful to the DGCA for their cooperation and guidance throughout this process. SpiceJet remains fully committed to delivering safe, efficient, and customer-centric operations while upholding the highest regulatory compliance standards.”

Earlier, SpiceJet Ltd announced that it has 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 $5 million, together with an agreement about the treatment of certain aircraft engines. Both parties have reached this agreement through amicable negotiations, resolving 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 As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums.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 resolution further strengthens SpiceJet’s commitment to restoring financial stability and mitigating legal liabilities. This settlement follows two other significant financial agreements by SpiceJet in recent weeks. 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 USD 22.5 million. Prior to that, on September 24, the company had settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed USD 16.7 million, for an undisclosed lower amount. These three key settlements in rapid succession showcase SpiceJet’s dedication to addressing its financial challenges and securing a stronger, more stable foundation for future growth and operational efficiency.

About the Company

Today, shares of SpiceJet Ltd gained 1.70 per cent to Rs 67.60 per share from its previous closing of Rs 66.47 per share. The stock is up by 98.8 per cent from its 52-week low of Rs 34 per share.

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 8,300 crore. According to the shareholding pattern of September 2024, FIIs bought a 23.31 per cent stake and increased their stake to 25.12 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.