Introduction:
An aviation stock surged 4.1% to ₹55.87 after resolving a $90.8 million dispute with Export Development Canada for $22.5 million. The settlement improved financial stability, enabled ownership of 13 Q400 aircraft, and reduced costs, setting the stage for operational growth and efficiency.
Share Price movement of SpiceJet Ltd:
On November 14, 2024, SpiceJet Ltd share price opened at ₹54.00, reaching an intraday high of ₹56.70 and a low of ₹53.75, before closing at ₹55.95. The aviation stock showcased steady trading activity amidst market fluctuations during the day.
SpiceJet Ltd share price rise:
Aviation stock SpiceJet surged 4.1% to ₹55.87 on the BSE in Thursday’s intraday trading after settling a $90.8 million dispute with Export Development Canada (EDC) for $22.5 million. This settlement saved the airline $68.3 million (₹574 crore), significantly improving its financial stability.
With the settlement, SpiceJet acquired full ownership of 13 EDC-financed Q400 aircraft, eliminating monthly rental obligations. The move is expected to reduce operational costs and enhance the airline’s fiscal position, enabling sustained growth and improved operational efficiency.
SpiceJet highlighted that this agreement is one of its largest settlements, significantly strengthening its financial foundation by removing a major liability from its balance sheet. The airline plans to optimise its fleet, adding 18 flights in phases as Q400 aircraft return to service.
Despite an 8% year-to-date drop, SpiceJet shares gained 47.9% over the past year, outperforming the BSE Sensex. The company, valued at ₹7,085.16 crore, recently expanded operations on new routes like Shivamogga-Chennai and Hyderabad-Chennai, leveraging its newly acquired aircraft for growth.
Recent news About SpiceJet Ltd:
On September 10, 2024, SpiceJet announced that Carlyle Aviation would write off $40.2 million of the airline’s lease arrears and convert an additional $30 million into equity at ₹100 per share, a 56% premium over the previous closing price.
Stock performance of SpiceJet Ltd for Period of 1 week, 6 months and 1 year:
SpiceJet’s stock performance showed a decline of 9.52% over the past week, a drop of 11.5% in six months, and a significant 45.2% decrease over the past year, reflecting ongoing market challenges in the aviation sector.
Shareholding pattern of SpiceJet Ltd:
| Summary | Sep-24 | Jun-24 | Mar-24 |
| Promoter | 29.10% | 47.70% | 48.30% |
| FII | 22.90% | 1.80% | 1.70% |
| DII | 8.50% | 5.20% | 5.40% |
| Public | 39.60% | 45.40% | 44.60% |
| Others | 0% | 0% | 0% |
About SpiceJet Ltd Industries:
SpiceJet Ltd operates in the aviation industry, providing passenger and cargo airline services. Known for its low-cost model, it serves domestic and international routes, focusing on affordability and efficiency. SpiceJet also offers logistics solutions, playing a significant role in India’s growing aviation sector.
