SpiceJet shares: Two senior execs resign; airline converts Elara stock warrants

Shares of SpiceJet Ltd hogged spotlight at Dalal Street during the trading session on Tuesday amid the back of news flow. The low-cost carrier saw a sharp fall amid the reported resignation of two senior officials. If it comes to be true, it will be a fresh blow to the troubled airlines.

According to the reports floating in the media, SpiceJet’s Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia have resigned from the airline and are currently serving their notice period. However, the company has not confirmed or denied the same yet.

"The board of directors of SpiceJet has considered and approved allotment of 34,66,666 equity shares of the face value of Rs 10 each at an issue price of Rs 50 each on March 11, 2024 to Elara India Opportunities Fund consequent upon conversion 34,66,666 warrants allotted to it on January 25, 2024 on preferential basis," said the company in an exchange filing.

Before making a partial recovery, shares of SpiceJet tanked about 10 per cent to Rs 54.60 on Tuesday, with its total market capitalization falling below Rs 4,000 crore. The scrip had settled at Rs 60.58 in the previous trading session. The stock has surged over 150 per cent from its 52-week lows at Rs 22.65 hit in May 2023.

In August 2023, Meenakshi Kashyap, spouse of Arun Kashyap, and Ajay Bhatia, spouse of Shlipa Bhatia, established a company called Sirius India Airlines Private Limited. SpiceJet subsequently announced that any future endeavors by Sirius India Airlines would require the consent of SpiceJet.

Last April, Arun Kashyap reconnected with SpiceJet for his second tenure at the airline, where he was under the supervision of Chairman and Managing Director, Ajay Singh. Meanwhile, Bhatia, who was in her third stint at the airline, was responsible for revenue management, sales, and network planning, reporting directly to Singh.

SpiceJet has been facing a cash crunch for the past several quarters. It is also dealing with multiple court cases. SpiceJet had on February 22 raised a second tranche of Rs 316 crore under the preferential issue of equity and warrants, which was approved by shareholders in early January. On January 26, the first tranche of Rs 744 crore was infused in the airline.