Shares of budget carrier SpiceJet recovered 5.45 per cent from day's low value to hit a high of Rs 63.25 in Friday's trade. The stock saw heavy trading volume today as around 26.33 lakh shares changed hands today at the time of writing this story. The figure was higher than the two-week average volume of 22.62 lakh shares. Turnover on the counter came at Rs 16.26 crore, commanding a market capitalisation (m-cap) of Rs 4,864.16 crore.
Today's sudden upmove in the share price came after the airline said will seek a refund of Rs 450 crore out of the Rs 730 crore it has previously paid to former promoter Kalanithi Maran and his firm, KAL Airways.
"The Division Bench of the Delhi High Court ruled on May 17 in favour of SpiceJet and its promoter, Ajay Singh, in the long-standing share transfer case against former promoter Kalanithi Maran and his firm, KAL Airways. This ruling overturns a previous decision by a single-judge bench, positioning SpiceJet to claim a substantial refund based on legal advice," SpiceJet stated.
"SpiceJet has paid a total of Rs 730 crore, comprising Rs 580 crore in principal along with an additional Rs 150 crore towards interest to Maran and KAL Airways. With the setting aside of the impugned order, SpiceJet is set to receive a refund of Rs 450 crore," it added.
In its ruling, SpiceJet mentioned that the division bench held that the single judge had erred in dismissing the Section 34 petitions without due consideration of the claims of patent illegality and the order of refund passed against it despite admitted breaches on the part of KAL Airways and Kalanithi Maran.
On technical charts, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 150-day and 200-day simple moving averages (SMAs) but lower than the 100-day SMA.
The stock's 14-day relative strength index (RSI) came at 55.38. 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 41.12 against a price-to-book (P/B) value of (-)1.41. Earnings per share (EPS) stood at (-)1.51 with a return on equity of 3.42.