SpiceJet shares zoom 16% in last 30 minutes of trade; here’s why

Shares of budget carrier SpiceJet Ltd zoomed over 16% intraday after the airlines said it has completed the Rs 100 crore settlement payment to City Union Bank, after a decade it took the loan. The airline paid the last Rs 25 crore tranche on June 30, 2023, thereby closing the loan account, which was opened in 2012.

SpiceJet shares gained 16.69% to Rs 30.95 against the previous close of Rs 27.25 on BSE. The aviation stock opened flat at Rs 27.54 today. The stock has lost 38.11% since the beginning of this year and has fallen 38.74% in a year. In terms of technicals, the relative strength index (RSI) of SpiceJet stands at 45, signaling it's trading neither in the overbought nor in the oversold territory. The stock has a beta of 0.8, indicating average volatility in a year.

ALSO WATCH: Hot stocks on July 3, 2023: Mazagon Dock, Suzlon Energy, Brightcom Group, Power Grid and more

A total of 59.76 lakh shares of the firm changed hands amounting to a turnover of Rs 17.97 crore on BSE. The market cap of SpiceJet rose to Rs 1,844 crore. Later, the stock closed 12.44% higher at Rs 30.64 on BSE.

The stock hit a 52-week high of Rs 52.40 on August 3, 2022 and fell to a 52-week low of Rs 23.65 on May 23, 2023.

With the payment of Rs 25 crore, all the securities of the air carrier that had been pledged with the lender now get released.

ALSO READ: Rs 322 to Rs 3,472: This power stock turned into a multibagger in three years; trading at record high

"The repayment to City Union Bank follows a successful settlement agreement with Nordic Aviation Capital (NAC), a major lessor for SpiceJet’s Q400 aircraft. The agreement with NAC settles all past liabilities for the Q400s leased by NAC to SpiceJet and paves the way for the return and induction of three additional planes into the SpiceJet fleet," SpiceJet said.

The statement added that the airline remains committed to finding amicable settlements with all its creditors as it builds its fleet and business back.

Also read: Buzzing stocks on June 3, 2023: Tata Motors, Suzlon Energy, ZEEL, Mazagon Dock, BSE, others

Also watch: India on its way to become a manufacturing and exports powerhouse? See how PLI is aiding this move, caveats of the scheme, and more