Shares of SpiceJet Ltd rose 3.87 per cent to hit a day high of Rs 65 in Tuesday's deals. Today's upward move in the stock price came after the budger carrier annouced that it has reached a settlement terms with aircraft leasing firm, Cross Ocean Partners, resolving a dispute of about $11.2 million (Rs 93 crore).
"The parties made this joint announcement before the Delhi High Court in the ongoing execution petition being pursued by Cross Ocean Partners. The settlement is expected to result in significant savings for SpiceJet and also put an end to dispute. As part of the arrangement, the airline will also benefit from transfer of airframe and an engine at no additional cost, augmenting its operational capabilities," the airline stated.
Ajay Singh, Chairman and Managing Director at SpiceJet, said, "We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged expensive litigation. This settlement reinforces our commitment to effectively settle with our partners and strengthen our operational capabilities. We remain focused on sustaining the positive momentum and creating long-term value for our stakeholders."
In addition to this settlement, SpiceJet recently concluded a similar agreement with Celestial Aviation, a subsidiary of AerCap, one of the largest aircraft lessor groups. The settlement was valued at $29.9 million (Rs 250 crore).
On technical setup, the counter was trading higher than the 5-day, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 10-day, 20-, 30-day and 50-day SMAs. The stock's 14-day relative strength index (RSI) came at 48.90. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 47.25 against a negative price-to-book (P/B) value of 1.61.
On BSE, around 22.57 lakh shares changed hands today at the time of writing this story. The figure was lower than the two-week average volume of 41.41 lakh shares. Turnover on the counter came at Rs 14.42 crore, commanding a market capitalisation (m-cap) of Rs 4,444.78 crore.
There were 14,09,712 sell orders against buy orders of 6,30,428 shares. As of December 2023, promoters held 48.49 per cent stake in the airline.
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