SpiceJet shares jump over 4% after NCLT dismisses insolvency bid
What's the story
SpiceJet's shares soared over 4% in early trade today, hitting a two-week high after the National Company Law Tribunal (NCLT) dismissed an insolvency petition against the budget airline. Wilmington Trust SP Services had filed the petition in June over unpaid dues, but it was rejected on Monday, as per an exchange filing. Other aircraft lessors, including Aircastle Ireland, Willis Lease, and Celestial Aviation have also filed insolvency pleas against SpiceJet. NCLT has only issued notice on Aircastle's petition.
Details
Insolvency plea dismissal leads to SpiceJet's overall performance growth
On Bombay Stock Exchange, SpiceJet's stocks climbed 4.68% to Rs. 67.30 apiece, its highest value since January 12. Over the past year, the share price has risen by 92%. The day's total traded volume was 1.6 times its 30-day average, with a relative strength index of 61.06. Out of four analysts tracking SpiceJet, one has a 'buy' rating on the stock, while three recommend 'hold'.
Funds raised
Stock performance also boosted by fresh funding
Yesterday, SpiceJet stocks soared by 4.5% as it secured over Rs. 900 crore in funding. Battling financial woes, the airline has received Rs. 744 crore as part of the total Rs. 2,250 crore being sourced through issuance of securities on preferential basis. The fundraise includes a Rs. 160 crore instalment from the government's Emergency Credit Line Guarantee Scheme (ECLGS). At 2:52pm, the stocks were trading at Rs. 65.22 apiece, up by 1.47% since yesterday.