SpiceJet shares gain as High Court keeps share transfer dispute pending

Shares of SpiceJet gained over 5 per cent after the Delhi High Court on Monday kept its order pending on a plea of Sun group head Kalanithi Maran seeking issuance of stock warrants in Spicejet to him and his Kal Airways Pvt (KAL).

The stock hit an intraday high of Rs 62.10, up 5.25 per cent on the Bombay Stock Exchange (BSE). The scrip ended the day 2.88 per cent higher.

The court, which initially proposed to pass an interim order, later kept it on hold till tomorrow after the counsel for the airline expressed certain reservations regarding it and sought time to get instructions from his client Spicejet.

Justice Manmohan Singh, in the proposed interim order, had given suggestions to resolve the share transfer dispute between Spicejet and Maran after the airline today placed before the bench the draft resolution, passed by its board for issuing the stock warrants to Maran and KAL.

During the hearing, after perusing the draft resolution, the judge had orally said he would in his order suggest the airline to pass the final resolution within three days.

Both sides would then be asked to together move the Bombay Stock Exchange (BSE) for approving the resolution as an approval from the bourse was required to issue the stock warrants, the court said.

It also said it would ask BSE to consider the resolution in terms of an application made by Spicejet back in September 2014 when it was being managed by Maran and take a decision within a specified time limit.

The court had on March 11 asked Spicejet to pass a board resolution for issuing stock warrants to Maran and Kal Airways as per a 2015 sale purchase agreement which led to ownership of the carrier being transferred to Ajay Singh, the co-founder of Spicejet.
 
(With inputs from PTI)