SpiceJet shares tank 11% in early trade; here’s why
SpiceJet shares fell 11.19% to Rs 38.72 in early trade against the previous close of Rs 43.60 on BSE. The aviation stock opened lower at Rs 42.50 today.
- Oct 16, 2023,
- Updated Oct 16, 2023 10:37 AM IST
Shares of airline SpiceJet Ltd tanked over 11% in early trade after a report said IndiGo co-founder and former promoter Rakesh Gangwal had no intentions t to buy a stake in the low-cost carrier. SpiceJet shares fell 11.19% to Rs 38.72 in early trade against the previous close of Rs 43.60 on BSE.
The aviation stock opened lower at Rs 42.50 today. Market cap of SpiceJet fell to Rs 2714.67 crore. The stock has gained 2% since the beginning of this year and has risen 2.40% in a year.
The stock has a beta of 0.5, indicating low volatility in a year.
In terms of technicals, the relative strength index (RSI) of SpiceJet stands at 73.2, signaling it's trading in the overbought territory. SpiceJet shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.
A total of 67.43 lakh shares of the firm changed hands amounting to a turnover of Rs 27.22 crore on BSE.
The stock hit a 52-week high of Rs 43.82 on October 13, 2023 and fell to a 52-week low of Rs 22.65 on May 23, 2023.
On October 13, SpiceJet shares rallied nearly 18 per cent amid a media report that said the co-founder of airline IndiGo, Rakesh Gangwal, was in advanced stage of talks to acquire a stake in the BSE-listed firm. Gangwal held 5,10,21,132 shares or 13.23 per cent stake in InterGlobe Aviation Ltd at the end of June quarter.
However, a report by The Economic Times over the weekend quoted a banker saying that Gangwal doesn’t have any interest in investing in SpiceJet.
The Gangwal couple own 25 per cent stake in IndiGo. As per the latest company data, Gangwal and his wife Shobha Gangwal held 13.23 per cent (5,10,21,132 shares) and 2.99 per cent stakes, respectively in IndiGo operator InterGlobe Aviation as of June-end, while the family-owned Chinkerpoo Family Trust holds a 13.5 per cent stake.
“He still owns 25% in IndiGo. It doesn’t make the remotest sense for him to invest in SpiceJet...Moreover, he sees SpiceJet as a dying airline,” said the banker.
For the June quarter, SpiceJet logged a net profit of Rs 205 crore compared with a loss of Rs 789 crore in the corresponding quarter of last year, due to strong air travel demand. It also registered industry's highest domestic load factor of 90 per cent in the June quarter.
Also read: JTL Industries shares at Rs 286? Here's why analysts are positive after a mixed Q2 results
Shares of airline SpiceJet Ltd tanked over 11% in early trade after a report said IndiGo co-founder and former promoter Rakesh Gangwal had no intentions t to buy a stake in the low-cost carrier. SpiceJet shares fell 11.19% to Rs 38.72 in early trade against the previous close of Rs 43.60 on BSE.
The aviation stock opened lower at Rs 42.50 today. Market cap of SpiceJet fell to Rs 2714.67 crore. The stock has gained 2% since the beginning of this year and has risen 2.40% in a year.
The stock has a beta of 0.5, indicating low volatility in a year.
In terms of technicals, the relative strength index (RSI) of SpiceJet stands at 73.2, signaling it's trading in the overbought territory. SpiceJet shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.
A total of 67.43 lakh shares of the firm changed hands amounting to a turnover of Rs 27.22 crore on BSE.
The stock hit a 52-week high of Rs 43.82 on October 13, 2023 and fell to a 52-week low of Rs 22.65 on May 23, 2023.
On October 13, SpiceJet shares rallied nearly 18 per cent amid a media report that said the co-founder of airline IndiGo, Rakesh Gangwal, was in advanced stage of talks to acquire a stake in the BSE-listed firm. Gangwal held 5,10,21,132 shares or 13.23 per cent stake in InterGlobe Aviation Ltd at the end of June quarter.
However, a report by The Economic Times over the weekend quoted a banker saying that Gangwal doesn’t have any interest in investing in SpiceJet.
The Gangwal couple own 25 per cent stake in IndiGo. As per the latest company data, Gangwal and his wife Shobha Gangwal held 13.23 per cent (5,10,21,132 shares) and 2.99 per cent stakes, respectively in IndiGo operator InterGlobe Aviation as of June-end, while the family-owned Chinkerpoo Family Trust holds a 13.5 per cent stake.
“He still owns 25% in IndiGo. It doesn’t make the remotest sense for him to invest in SpiceJet...Moreover, he sees SpiceJet as a dying airline,” said the banker.
For the June quarter, SpiceJet logged a net profit of Rs 205 crore compared with a loss of Rs 789 crore in the corresponding quarter of last year, due to strong air travel demand. It also registered industry's highest domestic load factor of 90 per cent in the June quarter.
Also read: JTL Industries shares at Rs 286? Here's why analysts are positive after a mixed Q2 results