SpiceJet witnessed a surge in its share price by over seven per cent today as the low-cost budget carrier concluded its ₹755-crore deal with Export Development Canada (EDC), thereby clearing significant liabilities. The airline announced that this agreement will lead to a comprehensive revitalization of its balance sheet, marking a significant breakthrough in its financial restructuring efforts.
Starting the day at ₹58.58, SpiceJet shares soared by 7.54 per cent to reach an intraday high of ₹63.00, against a 52-week high of ₹77.50 per share on the BSE. Ultimately, the shares settled 3.93 per cent higher at ₹61.06 apiece on the BSE.
As a result of the agreement settlement, SpiceJet will now gain ownership of 13 Bombardier EDC-financed Q400 aircraft. Under the terms, SpiceJet will make a comprehensive settlement payment to resolve outstanding liabilities amounting to approximately $91 million based on SpiceJet’s books of accounts.
SpiceJet expressed its satisfaction with the settlement, stating that it not only relieves the airline of a substantial financial burden but also lays the foundation for a strengthened balance sheet and significant savings.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed gratitude towards EDC’s leadership and management team for their cooperation and progressive approach throughout the process. Singh emphasized that this milestone will enable SpiceJet to fortify its balance sheet and position the airline for long-term success.
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