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SpiceJet shares surge amidst talks of Rakesh Gangwal buying stake

Oct 13, 2023

By: BlinkX Research Team

SpiceJet Ltd witnessed a remarkable surge in today's trading session, driven by reports indicating that Rakesh Gangwal, a co-founder of airline giant IndiGo, is in advanced discussions about acquiring a stake in the company.

Last month, SpiceJet followed the Supreme Court's directives and successfully made a $1.5 million payment to Credit Suisse, executing the transaction on September 14. Additionally, the airline adhered to the directions of the Delhi High Court by paying Rs 100 crore to Kal Airways Private Limited.

A report stated that SpiceJet plans to revitalize the airline. Following this development, the stock surged reaching a high of Rs 43 on the BSE.During the June quarter, SpiceJet reported a net profit of Rs 205 crore, a significant turnaround from the Rs 789 crore loss during the same period last year. 

This impressive performance is attributed to robust air travel demand and the airline's achievement of the industry's highest domestic load factor, standing at 90% in the June quarter. 

Notably, a pending insolvency petition against SpiceJet by lessor Celestial Aviation has been filed with NCLT Mumbai. The ET NOW report highlights that Celestial Aviation has claimed a default of $20.9 million for nine aircraft against SpiceJet. 

Other lessors, including Willis Lease, Aircastle, and Wilmington, have also initiated similar actions against SpiceJet in NCLT Mumbai.