Shares of SpiceJet Ltd. jumped nearly 4% on Tuesday after it settled a Rs 93-crore dispute with the aircraft leasing firm Cross Ocean Partners.
The parties reached a settlement and made this joint announcement before the Delhi High Court, the budget carrier said in a release.
As a result of this move, the airline will benefit from transfer of airframe and an engine at no additional cost, augmenting its operational capabilities, it said. "The settlement is expected to result in significant savings for SpiceJet and also put an end to (the) dispute."
SpiceJet's stock rose as much as 3.87% during the day to Rs 65 apiece on the BSE. It was trading 2.67% higher at Rs 64.25 per share, compared to a 0.09% decline in the benchmark Sensex at 1:18 p.m.
The share price has risen 76.06% in the last 12 months. The total traded volume so far in the day stood at 0.7 times its 30-day average. The relative strength index was at 46.9.
One out of the four analysts tracking SpiceJet has a 'buy' rating on the stock and three recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 24.9%.
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