SpiceJet Settles Rs 755-Crore Dispute With Export Development Canada, Stock Jumps
This settlement will result in Rs 567 crore of savings to the airline.
Shares of SpiceJet Ltd. jumped on Tuesday after it reached a settlement with Export Development Canada to resolve Rs 755 crore of liabilities.
This settlement will result in Rs 567 crore of savings to the airline. The company will also acquire full ownership of 13 EDC-financed Q400 aircrafts, SpiceJet said in a release.
Currently grounded, 12 of these Q400 aircrafts will assist SpiceJet in launching flights in different regional places, it said.
On the BSE, SpiceJet's stock rose as much as 5.53% during the day to Rs 62 apiece, the highest since March 18. It was trading 5.46% higher at Rs 61.96 per share, compared to a 0.29% decline in the benchmark Sensex as of 1:25 p.m.
The share price has risen 95.22% in the last 12 months. The relative strength index was at 48.95.
Out of four analysts tracking the company, one has a 'buy' rating on the stock and three recommend 'hold,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 22.9%.
