Under Rs 70 Stock in Green After Aircastle Withdraws Insolvency Case Against SpiceJet Following Amicable Settlement

The stock is up by 51 per cent from its 52-week low of Rs 42.05 per share.

Aircraft lessor Aircastle (Ireland) Designated Activity Company has withdrawn its insolvency case against SpiceJet Ltd before the National Company Law Tribunal (NCLT). This follows a mutually agreed-upon settlement, marking a positive turn in the airline's efforts to rebuild and strengthen ties with its partners.

Last month, SpiceJet announced the resolution of a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited. The settlement was reached for an aggregate sum of $5 million, alongside an agreement on the treatment of certain aircraft engines. Both parties opted for an amicable negotiation process, successfully avoiding prolonged courtroom proceedings.

As part of the settlement, all ongoing litigations and disputes between the two parties have been withdrawn from the appropriate forums. This development marks another significant milestone for SpiceJet, which has been actively resolving disputes with various partners, including aircraft lessors. The airline’s recent successful INR 3000 Crore Qualified Institutional Placement has provided the necessary financial impetus to address these issues and strengthen its operations.

About the Company

Today, shares of SpiceJet Ltd surged 3.30 per cent to Rs 63.40 per share from its previous closing of Rs 61.39 per share. The stock is up by 51 per cent from its 52-week low of Rs 42.05 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 8,000 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.