Jet Airways, SpiceJet hit 52-week lows, slip up to 10% in firm market

Shares of Jet Airways declined 5 per cent as uncertainty continued over the revival of the grounded air line company

SI Reporter Mumbai
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Shares of airlines companies, Jet Airways and SpiceJet, came under heavy selling pressure on Monday, falling up to 10 per cent and hitting their respective 52-week lows, on the BSE in an otherwise firm market. At 02:07 PM, the S&P BSE Sensex was up 0.28 per cent at 61,905.
Shares of Jet Airways declined 5 per cent to Rs 53.40 in the intra-day trade as uncertainty continued over the revival of the grounded air line company. The validity of the airline's air operator's certificate (AOC) expired on Friday, May 19.
According to a PTI report, there was no word from the Jalan Kalrock Consortium (JKC), which emerged as the winning bidder for the carrier under the insolvency resolution proceedings, on the status of the airline's flying permit.

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The AOC of the airline, which has not flown since April 18, 2019, was revalidated on May 20 last year for a one-year period and the validity ended on Friday. CLICK HERE FOR FULL REPORT
Meanwhile, according to a Business Standard report, the National Company Law Appellate Tribunal will, on May 30, pass an order on an application by Jalan-Kalrock (JKC) consortium, which is reviving bankrupt Jet Airways, to stop State Bank of India (SBI) from invoking its bank guarantee of Rs 150 crore. CLICK HERE FOR FULL REPORT
Shares of SpiceJet, meanwhile, slipped 10 per cent to hit a 52-week low of Rs 26.30 in the intra-day trade on Monday. The stock has fallen below its previous low of Rs 26.35, touched on April 25, 2023. In the past one month, it has declined 18 per cent, as compared to 3 per cent rise in the S&P BSE Sensex.
On May 11, SpiceJet announced that it has initiated the process of reviving its grounded fleet with the $50 million funds received by the airline from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.
"In view of the recent developments in the Indian aviation market, the airline has categorically stated that it has no plans whatsoever to file for insolvency, the company said. “We want to scotch any speculation that may have arisen due to the filing by another airline. The airline is firmly focussed on its business and remains in active talks with investors to raise funds,” SpiceJet had said.
SpiceJet had announced plans to revive 25 grounded aircraft that will help it capitalise and make the most of the upcoming peak travel season.
"There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focussed firmly on reviving our grounded fleet and getting more and more planes back into the air. Work on this front has already begun and the Company is using the $50 million ECLGS funds and our own cash," said Ajay Singh, Chairman and Managing Director, SpiceJet.
In another development, SpiceJet said last week that United Kingdom‐based SRAM & MRAM Group will invest $100 million in SpiceXpress and Logistics Private Limited. Both sides have signed a MoU as part of the investment deal.
SpiceXpress and Logistics is a subsidiary of SpiceJet incorporated with an objective to undertake the business of providing a platform for dedicated goods transportation across globe and other allied services.
The MoU with SRAM & MRAM Group follows a restructuring agreement with aircraft lessor Carlyle Aviation Partner wherein the latter picked up a stake in SpiceXpress at an anticipated future valuation of $1.5 billion or Rs 12,422 crore, the company had said.

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First Published: May 22 2023 | 2:43 PM IST

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