SpiceJet Shares Rebound After It Settles Rs 250 Crore Dispute With Celestial Aviation
Both parties reached out to NCLT last week, and now the matter will officially be withdrawn on March 1, the company said.
Shares of SpiceJet rebounded by afternoon trade on Wednesday after it said it had settled a dispute with Celestial Aviation.
The company, along with Celestial Aviation, a subsidiary of AerCap, has mutually settled their $29.9 million, or Rs 250 crore, dispute through amicable negotiations, avoiding litigation, according to an exchange filing.
Both parties reached out to NCLT last week, and now the matter will officially be withdrawn on March 1, the filing said.
SpiceJet has raised Rs 1,060 crore through preferential issues with investors like Aries Opportunities Fund Ltd. and Elara India Opportunities Fund Ltd., which the company will use to settle past disputes.
Shares of the company rebounded to trade 0.18% higher at Rs 66.35 apiece as of 1:56 p.m., compared with a 0.71% decline in the BSE Sensex. The stock had fallen as much as 4.73% during morning trade to Rs 63.10 apiece, the lowest level since Feb. 15.
It has risen 78.12% in the past 12 months. The relative strength index was at 48.36.
One analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies a downside of 26.0%.
