• Fri. Mar 1st, 2024

SpiceJet stock rises 18% on the news discussions to purchase a share by Rakesh Gangwal

ByNishat Manzar

Oct 13, 2023

According to a media source, Celestial Aviation has filed an NCLT lawsuit against SpiceJet for failing to pay $20.9 million for nine aircraft.

Shares of SpiceJet Ltd rose over 18% on Friday after a media report claimed that Rakesh Gangwal, the co-founder of airline IndiGo, was in advanced stages of negotiations to buy a stake in the BSE-listed company. At the conclusion of the June quarter, Gangwal owned 5,10,21,132 shares, or 13.23% of InterGlobe Aviation Ltd.

SpiceJet sent $1.5 million to Credit Suisse last month to comply with the Supreme Court’s order. The transaction took place on September 14. In accordance with the Delhi High Court’s orders, SpiceJet has paid Kal Airways Private Limited Rs 100 crore.

According to a recent story by ET Now that cited sources, SpiceJet may be trying to save the airline. Following the news, the stock increased 17.74% to a high of Rs 43 on the BSE.

Due to robust demand for air travel, SpiceJet reported a net profit of Rs 205 crore for the June quarter as opposed to a loss of Rs 789 crore in the similar quarter previous year. Additionally, it had a domestic load factor of 90% in the June quarter, the highest in the business.

SPOTLIGHT

At NCLT Mumbai, lessee applications for insolvency against SpiceJet are still pending. According to the ET NOW story, Celestial Aviation has filed an NCLT lawsuit against SpiceJet for failing to pay $20.9 million for nine aircraft. According to the report, more lessors including Willis Lease, Aircastle, and Wilmington have also filed a lawsuit against SpiceJet in NCLT Mumbai.

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