SpiceJet gains on hopes of warrants' issue settlement

The stock rallied 5% to Rs 62 on the BSE in early morning trade.

SpiceJet has rallied 5% to Rs 62.10 on the BSE in otherwise subdued market, after the company announced that counsels of SpiceJet and KAL Airways have agreed before the Delhi High Court that they will jointly approach the regulators, seeking permission to issue warrants.

“In the matter of Mr. Kalanithi Maran vs. SpiceJet Limited & Another and Kal Airways Private Limited vs. SpiceJet Limited & Another filed before Hon’ble High Court of Delhi, the Parties have agreed to jointly approach the Bombay Stock Exchange (BSE) and Securities and Exchange Board of India (Sebi). Necessary Board Resolution will be passed authorising the joint representatives to represent the applications before BSE/ SEBI,” SpiceJet said in a BSE filing.

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SpiceJet has already been pursuing this matter before the BSE/ SEBI jointly with the representative of Mr. Kalanithi Maran and Kal Airways Private Limited and the matter is pending consideration with SEBI, it added. The company said that the issuance of warrants was to be made subject to regulatory approvals and could not be issued due to non-receipt of the same.

Shares of SpiceJet on Monday, slumped nearly 11% to Rs 55.15, its lowest level since November 20, 2015 on the BSE in intra-day trade.

At 09:53 AM on Tuesday, the stock surged 3.5% at Rs 61.05 on the BSE as compared to 0.2% decline in the S&P BSE Sensex. Around 4.62 million shares have already changed hands, as against an average 8.6 million shares that were traded daily in past two weeks on the BSE.