Multibagger airline stock at Rs 58.60 - SpiceJet refutes claims by KAL Airways and Kalanithi Maran, labels damages claim as baseless; details inside

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 25.50 per share whereas BSE Small-Cap Index is up by 58 per cent in the same period.

SpiceJet Ltd strongly refutes the claims made by KAL Airways and Kalanithi Maran regarding seeking damages of Rs 1,323 crore. These assertions are not only legally untenable but also a regurgitation of previously rejected claims by the Arbitral Tribunal and then the Delhi High Court.

It is important to clarify the following facts:

Repeated rejection of damages claim: KAL Airways and Kalanithi Maran initially sought damages of more than Rs.1300 crore during the arbitration proceedings. This claim was thoroughly examined and subsequently rejected by a panel of three retired Supreme Court judges.

Following this, KAL Airways and Kalanithi Maran appealed to the Single-Judge Bench of the Delhi High Court, seeking the same amount in damages, which was again rejected by the court. Notably, they chose not to pursue any appeal before the appellate jurisdiction and consequently, the matter attained finality. This matter is devoid of any merit and appears to be an endeavour to sensationalise the issue and mislead the public.

The Division Bench of the Delhi High Court on May 17, 2024, ruled in favour of SpiceJet and Ajay Singh. Following the success before the Division Bench of the Delhi High Court, SpiceJet will now pursue a refund of Rs 450 crore.

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About SpiceJet Ltd

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.

Today, shares of SpiceJet Ltd surged 0.60 per cent to an intraday high of Rs 58.60 per share from its previous closing of Rs 58.27. The stock’s 52-week high is Rs 77.50 and its 52-week low is Rs 25.50. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 25.50 per share whereas BSE Small-Cap Index is up by 58 per cent in the same period.

The company has a market cap of Rs 4,850 crore. According to the shareholding pattern of March 2024, FIIs increased their stake to 1.73 per cent and DIIs increased their stake to 5.30 per cent compared to 0.33 per cent and 0.04 per cent in December 2023. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.