SpiceJet shares post profits, slide 6% intraday

Shares of SpiceJet fell more than 6% in a falling market during today’s afternoon session. The stock’s correction comes a day after it saw a huge 18% intraday rally amid reports that the airline was in talks with various investors for sustainable funding. SpiceJet stock slipped as much as 6.29% to Rs 46.9 today against the previous close of Rs 50.05 on BSE.

The small cap stock fell after four days of gain. The stock opened flat at Rs 50.70 today. SpiceJet’s share has lost 35.58% over the past year and has fallen 30.48% since the start of this year.

In one week, the title gained 28.15%. Airline stocks are trading above the 5-day, 20-day and 50-day moving averages, but below the 100-day and 200-day moving averages. A total of 9.21 lakh shares of the company changed hands, representing turnover of Rs 4.43 crore on BSE. The airline’s market capitalization fell to Rs 2,852.52 crore.

Wednesday’s rally came after reports said promoter Ajay Singh was in talks to sell a stake, including to a Middle Eastern airline. Singh owns a 60% stake in the airline.

READ ALSO : SpiceJet in talks with investors for sustainable funding; shares jump 18.02%

Meanwhile, BSE has sought clarification from SpiceJet in reference to the media report that appeared in a major business daily titled “SpiceJet in talks with Middle Eastern carrier over possible stake sale”.

The low-cost airline also said it had exited the “cash and carry” deal it had with the Airports Authority of India (AAI). SpiceJet has now reached a full and final settlement with AAI and has paid all outstanding dues, the airline said. SpiceJet said it would revert to a prepayment mechanism for daily flight operations. The airline added that the AAI will also release its bank guarantee of Rs 50 crore as it has settled all its major debts.