SpiceJet Ltd experienced a substantial surge of approximately 18% in its shares during Friday’s trading session. This upward momentum was driven by a media report suggesting that Rakesh Gangwal, co-founder of IndiGo Airlines, was in advanced discussions about acquiring a stake in SpiceJet, a company listed on the Bombay Stock Exchange (BSE). It’s important to note that Rakesh Gangwal currently holds a 13.23% stake in InterGlobe Aviation Ltd, representing his ownership of 5,10,21,132 shares by the end of the June quarter.
In recent developments, SpiceJet diligently followed the directives of the Supreme Court by transferring $1.5 million to Credit Suisse, and this payment was successfully executed on September 14. Furthermore, SpiceJet made a payment of Rs 100 crore to Kal Airways Private Limited, in compliance with the instructions of the Delhi High Court.
A recent report from ET Now, citing undisclosed sources, suggested that SpiceJet was actively exploring opportunities to revitalize the airline. Following this development, the company’s stock price experienced a notable increase of 17.74%, reaching a peak of Rs 43 on the BSE.
During the June quarter, SpiceJet achieved a net profit of Rs 205 crore, a significant turnaround from a loss of Rs 789 crore in the same period the previous year. This financial success was primarily attributed to strong demand for air travel, as indicated by the airline’s achievement of the industry’s highest domestic load factor at 90% during the June quarter.
It is important to note that SpiceJet is currently facing insolvency petitions from lessors, which are pending before the National Company Law Tribunal (NCLT) in Mumbai. The ET NOW report highlighted that Celestial Aviation has initiated legal action at NCLT, seeking the resolution of a default amounting to $20.9 million involving nine aircraft leased to SpiceJet. Other lessors, including Willis Lease, Aircastle, and Wilmington, have similarly initiated legal proceedings at NCLT Mumbai against SpiceJet, according to the report.