FIIs Bought 27,86,70,546 Shares: Airline Stock Under Rs 65 Jumps with Heavy Volume After Settling Over USD 16 Million Dispute with Genesis
The stock is up by 33.3 per cent from its 52-week low of Rs 46 per share.
Today, shares of SpiceJet Ltd jumped 13 per cent to Rs 61.30 per share from its intraday low of Rs 54.20 per share with a 2.30 times spurt in volume. The stock is up by 33.3 per cent from its 52-week low of Rs 46 per share.
SpiceJet and Genesis have amicably resolved their over USD 16 million dispute. As part of the settlement, SpiceJet will pay Genesis USD 6 million and Genesis will acquire USD 4 million in SpiceJet equity for Rs 100 per share. This agreement will significantly reduce the airline's financial burden, enabling it to focus on long-term growth.
This settlement follows a series of successful resolutions with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, Export Development Canada, and others. In September 2024, Carlyle Aviation converted USD 30 million of lease arrears into SpiceJet equity at Rs 100 per share, reflecting increased stakeholder confidence in the airline's recovery. Acuité Ratings & Research Limited recently upgraded SpiceJet's credit rating by four notches, acknowledging the airline's recent financial progress.
Ajay Singh, Chairman and Managing Director, of SpiceJet, said, “This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, including Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and strengthen our balance sheet.”
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About the Company
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. Most of the airline's fleet offers SpiceMax, India's most spacious economy-class seating.
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 7,700 crore. According to the shareholding pattern of September 2024, FIIs bought 27,86,70,546 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 while DIIs bought 6,74,55,674 shares or 3.30 per cent stake in the company and increased their stake to 8.45 per cent in September 2024 compared to June 2024. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.