SpiceJet shares jump 5% on dispute settlement

9 Oct 2024 , 11:30 AM

SpiceJet shares rose more than 8% on Wednesday to a day high of Rs 67.98 on the BSE following the settlement of a Rs 1,107 crore dispute with lessors managed by Babcock & Brown Aircraft Management (BBAM).

The airline has settled a dispute worth $131.85 million (roughly ₹1,107 crore) with the lessors for $22.5 million.

As of 11:26 am, the stock was trading at ₹66.35 up 5.6% from the previous close.

“This unprecedented settlement with BBAM allows us to drastically decrease our liabilities while also reinforcing our efforts to emerge as a more robust airline. SpiceJet CMD Ajay Singh stated, “With the funds raised through our QIP, we are well-positioned to focus on growth, ungrounding our fleet, and expanding our services.”

This payment follows SpiceJet’s successful resolution of a dispute with Engine Lease Finance Corporation (ELFC) on September 24, which claimed $16.7 million.

SpiceJet is also planning to dramatically expand its fleet by the end of November, with the addition of ten aircraft.

The airline has previously completed a Qualified Institutional Placement (QIP) to earn Rs 3,000 crore, drawing significant investors like as Goldman Sachs, Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.

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