Shares of InterGlobe Aviation, which runs the country's largest airline IndiGo, hit a 52-week high of Rs 2,235.95, surging 8 per cent on the BSE in Wednesday’s intra-day trade on the back of heavy volumes after Go First filed for bankruptcy. Shares of Spicejet rallied 6 per cent to Rs 33.25 on the BSE.
The stock price of IndiGo surpassed its previous high of Rs 2,194, touched on February 6, 2023. It had hit a record high of Rs 2,379 on November 16, 2021. At 09:33 AM; IndiGo traded 5 per cent higher at Rs 2,174.60, as compared to 0.48 per cent decline in the S&P BSE Sensex. The average trading volumes at the counter jumped an over 10-fold, with a combined 1.6 million equity shares changing hands on the NSE and BSE.
Faced with a severe financial crunch as more than half of its fleet is grounded due to the non-availability of Pratt & Whitney engines, Go First on Tuesday filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) and has also decided to cancel all flights for May 3 and 4. READ MORE
Go First has informed the Directorate General Civil Aviation (DCGA) that all its flights will remain cancelled on 3rd and 4th May as the airline has been facing severe fund crunch since half of its fleet (out of 61 aircrafts that Go First has, roughly 28 are grounded due to trouble over non-supply of engines from Pratt & Whitney.
Meanwhile, in March, the rating agency ICRA upgraded the outlook on lnterGlobe Aviation from 'Negative' to 'Stable' while reaffirming the company's long-term credit rating and short-term credit rating.
The change in outlook factors in the improvement in operating environment aided by a healthy improvement in passenger volumes (both domestic and international), moderation in aviation turbine fuel prices over the past few months and further improvement in liquidity position, ICRA said.