SpiceJet share price zooms nearly 37% in 3 trading sessions- key triggers and what should investors do
According to a Reuters report, the companys promoter Ajay Singh has been exploring a possibility of a partial stake sale in the budget carrier.
SpiceJet share price: Shares of aviation company SpiceJet Ltd shares jumped almost 37 per cent in 3 days as the counter has been buzzing on multiple news triggers. The stock on Wednesday had surged by 18 per cent to touch a more than two-month high of Rs 52.4 per share on the BSE intraday.
According to a Reuters report, the company’s promoter Ajay Singh has been exploring a possibility of a partial stake sale in the budget carrier. “SpiceJet is in talks with a Middle Eastern carrier for the possible stake sale and talks are ongoing with a large Indian conglomerate,” Reuters reported.
Similarly, another news agency IANS also reported quoting sources that a big Middle Eastern airline has expressed interest to pick a 24 per cent stake and a board seat in SpiceJet. A big Indian business conglomerate has also approached Singh for a stake in the airline, the news agency said. Ajay Singh holds nearly 60 per cent stake in the airline, it added.
The report comes amid the domestic airline being under the spotlight lately following a slew of incidents of technical snags and aviation regulator Directorate General of Civil Aviation last week ordered SpiceJet to slash its approved fleet to 50 per cent this summer for eight weeks.
Besides, the airline company on Tuesday said that it had cleared all of its outstanding principal dues with the state-run airport operator Airports Authority of India.
"With this, SpiceJet will no longer remain on 'cash and carry' at AAI-run airports across the country and will revert to an advance payment mechanism for daily flight operations. SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in recent times," it said in a release.
AAI will release SpiceJet's Rs 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline, the company said. The Centre-run AAI had in 2020 put SpiceJet on a 'cash and carry' basis as the carrier was unable to clear its previous dues.
The stock closed nearly 13 per cent higher to Rs 50.05 per share on the BSE as against a 0.37 per cent rise in the BSE Sensex. It has recovered 51 per cent from its 52-week low level of Rs 34.60, touched on July 28, 2022.
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