IndiGo and SpiceJet shares surge after Jet Airways stock falls over key management exits
BusinessToday.In May 15, 2019
Shares of low-cost airline carriers SpiceJet and InterGlobe Aviation rose Wednesday on sinking share price of Jet Airways, a day after the debt-laden airline's chief executive and two other senior executives stepped down, raising serious doubts over its revival.
Following the news, share price of SpiceJet opened at Rs 122.85, up 0.95 points against Tuesday's close and rose 9.97 intraday to touch an intraday high of Rs 134.05. SpiceJet was the top gainer on BSE in the early trading session. The stock has risen 10.06 per cent in the last 2 days.
Similarly, IndiGo stock also opened at gain of almost 10 points to previous close of Rs 1562.75 and reached to Rs 1623, up 3.86 per cent to the day's high. The stock 2.78 per cent away from 52 week high of Rs 1,650.Indigo stock has been gained 4.44 per cent consecutively for the last 3 days.
On the other hand, shares of Jet Airways opened 6.20 per cent down at Rs 121.10 on BSE and fell as much as 6.86 per cent to Rs 120.25 to day's low as well as its new 52-week low. The stock has been losing for the last 3 days and has fallen 18.81% in the period.
CEO Vinay Dube, head of finance Amit Agarwal and head of human resources Rahul Taneja quit within a span of 24 hours after Jet failed to receive a concrete deal offer. Jet Airways was forced to ground all flights after running out of money and failing to secure funds.
Jet Airways stock has plunged 71 per cent in one year, and almost 53 per cent in the last one month. The cash-strapped carrier, also saddled with roughly $1.2 billion in bank debt, was crippled by mounting losses as it attempted to compete with low-cost rivals Interglobe-owned IndiGo, SpiceJet and Wadia Group-owned GoAir.
Currently at 1:00 pm, IndiGo shares are trading at Rs 1608.55, up 2.93 per cent and SpiceJet shares at Rs 130.45, up 7 per cent whereas the stock price of Jet Airways lies at Rs 122.40, down by 5.19 per cent on BSE.
(Edited by Rupa Burman Roy)