Smallcap stock under ₹65 jumps 9% after resolving $16 million dispute with Genesis
During Thursday’s trading session, the shares of a company engaged in the business of providing air transport services surged nearly 9 percent to Rs. 61.3 on BSE, after the company announced resolving over a $16 million dispute. With a market cap of Rs. 7,792..6 crores, at 01:26 p.m., the shares of SpiceJet Limited were trading […] The post Smallcap stock under ₹65 jumps 9% after resolving $16 million dispute with Genesis appeared first on Trade Brains.
During Thursday’s trading session, the shares of a company engaged in the business of providing air transport services surged nearly 9 percent to Rs. 61.3 on BSE, after the company announced resolving over a $16 million dispute.
With a market cap of Rs. 7,792..6 crores, at 01:26 p.m., the shares of SpiceJet Limited were trading in the green at Rs. 60.81, up by nearly 8.1 percent, as against its previous closing price of Rs. 56.28.
What’s the News?
SpiceJet Limited has announced, through its latest regulatory filings with stock exchanges, that it has resolved over $16 million dispute with Genesis by reaching an amicable settlement.
As part of the agreement, SpiceJet will pay Genesis $6 million, while Genesis will acquire $4 million worth of SpiceJet equity at a price of Rs. 100 per share.
This settlement is expected to deliver significant savings for the airline, supporting its efforts to build a strong foundation for long-term growth.
The agreement will also result in SpiceJet’s commitment to enhancing financial stability, strengthening operational resilience, and reducing legal liabilities.
Upon fulfilment of the settlement terms, both parties will withdraw all ongoing litigation and disputes related to the matter from the appropriate forums.
This settlement follows a series of successful agreements with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, and Export Development Canada, among others.
In September 2024, Carlyle Aviation demonstrated its increased confidence in SpiceJet’s financial and operational recovery by agreeing to convert $30 million in lease arrears into SpiceJet equity at a price of Rs. 100 per share.
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Financials:
SpiceJet reported a decline in revenue from operations, experiencing a year-on-year decrease of nearly 14.8 percent, falling from Rs. 2,004 crores in Q1 FY24 to Rs. 1,708 crores in Q1 FY25.
Similarly, the company’s net profit decreased from Rs. 198 crores to Rs. 158 crores over the same period, representing a decline of around 20.2 percent YoY.
Stock Performance:
The stock has delivered negative returns of nearly 8 percent of returns in one year, while around 13.6 percent of positive returns in the last six months. So far in 2024, the shares of SpiceJet have given positive returns of about 0.5 percent.
About the Company:
Incorporated in 1984, SpiceJet Limited is principally engaged in the business of providing air transport services for the carriage of passengers and cargo. It is a low-cost carrier (LCC) operating under the brand name of ‘SpiceJet’ in India since 23rd May 2005.
Written by Shivani Singh
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The post Smallcap stock under ₹65 jumps 9% after resolving $16 million dispute with Genesis appeared first on Trade Brains.
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