SpiceJet’s stock surged by 7% on October 9, 2024, after the airline announced a major settlement with its lessors under Babcock & Brown Aircraft Management (BBAM). This follows a 9% jump the previous day, signalling positive momentum for those looking to buy shares online.
SpiceJet’s settlement and stock rise
The dispute settlement amount of $22.5 million is significantly lower than the original claim of $131.85 million. This development comes as SpiceJet is actively trying to improve its balance sheet and restore its financial health. The stock was trading at ₹66.9 per share at 10 am, reflecting a 6.5% increase from the previous day’s closing price.
For investors aiming to buy shares online, this settlement boosts confidence in the airline’s financial restructuring and its broader recovery strategy.
SpiceJet's efforts to strengthen its financial position
This settlement is a part of SpiceJet’s ongoing strategy to stabilise its operations. Recently, the airline raised ₹3,000 crore through a Qualified Institutional Placement (QIP), allowing it to clear significant dues. As part of this, SpiceJet has also settled ₹71 crore in Goods and Services Tax (GST) dues and cleared ₹80 crore in salary arrears.
The stock has delivered over 80% returns in the last year, elevating the company’s market capitalisation to over ₹8,000 crore, making it an attractive option for investors looking to buy shares online.
SpiceJet's fleet expansion plans
SpiceJet's plans to expand its fleet with 10 new aircraft by November, including seven leased planes and three reintroduced grounded aircraft, have further boosted investor sentiment. This announcement came after a successful resolution of another $16.7 million claim by Engine Lease Finance Corporation (ELFC) in September.
For those considering to buy shares online, these moves indicate a strategic growth approach, as SpiceJet aims to restore its operations to pre-2019 levels when it had 74 operational aircraft, compared to just 28 currently.
What does this mean for investors?
SpiceJet’s stock price jump comes as a result of both its financial restructuring efforts and its future growth plans. With the airline making significant progress in settling its financial obligations and expanding its fleet, investors looking to buy shares online may find this a promising opportunity. However, it’s important to remain cautious, as the company still faces significant liabilities, and the airline industry can be volatile.
Invest safely
SpiceJet's recent settlement and stock performance reflect a positive shift in its financial standing. For those interested in buying shares online, the airline's improved outlook, combined with its ongoing recovery efforts, positions it as a noteworthy investment option in the current market.
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