SpiceJet shares declined over 6 per cent amid a falling market in the afternoon session today. The correction in the stock comes a day after it saw a huge rally of 18 per cent intraday amid reports that the airline was in discussions with various investors for sustainable financing. Stock of SpiceJet slipped up to 6.29 per cent to Rs 46.9 today against the previous close of Rs 50.05 on BSE.
The small cap stock has fallen after four days of gain. The stock opened flat at Rs 50.70 today. SpiceJet share has lost 35.58 per cent in last one year and fallen 30.48 per cent since the beginning of this year.
In a week, the stock has gained 28.15 per cent. The airline stock is trading higher than the 5-day, 20-day and 50-day moving averages but lower than 100-day and 200-day moving averages. Total 9.21 lakh shares of the firm changed hands amounting to a turnover of Rs 4.43 crore on BSE. Market cap of the airline fell to Rs 2,852.52 crore.
The rally on Wednesday came after news reports stated that promoter Ajay Singh was in talks for a stake sale, including with a Middle Eastern airline. Singh holds a 60 per cent stake in the airline.
Meanwhile, BSE has sought a clarification from SpiceJet with reference to the media report appearing in a leading business daily titled, "SpiceJet in discussion with Middle Eastern carrier for possible stake sale".
The budget airline also stated that it has come out of the 'cash and carry' arrangement it has with the Airport Authority of India (AAI). SpiceJet has now entered into a full and final settlement with AAI, and has cleared all outstanding dues, said the airline. SpiceJet said that it will revert to an advance payment mechanism for daily flight operations. The airline added that the AAI will also release its Rs 50 crore bank guarantee as it has cleared all its principal dues.
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