SpiceJet share price up 4.5% after SC upholds Delhi HC order favouring co

SpiceJet Supreme Court order: The Supreme Court, today, likely dismissed a petition filed by Kalanidhi Maran against the Delhi High Court's order which quashed the arbitral award in favour of Maran

SpiceJet-Kalanidhi Maran Supreme Court news: SpiceJet share price gained 4.5 per cent to Rs 59.79 per share on the BSE on Friday, July 26. The gain came after the Supreme Court (SC), reportedly, dismissed a petition filed by Kalanidhi Maran against the Delhi High Court's order which quashed the arbitral award in favour of Maran.

According to reports, the SC said the Delhi High Court was "justified" in sending the case back for reconsideration as the single judge "had not applied his mind at all".

The Chief Justice of India (CJI), reportedly, said: "Merely filling 200 pages with the Supreme Court judgement is not enough, the judgment should also have reasoning."

On May 17, 2024, the Delhi High Court had set aside its earlier order upholding the arbitral award in favour of Kalanithi Maran and against SpiceJet.

SpiceJet and chairman Ajay Singh had sought to set aside the portion of the award which directed them to refund Rs 270 crore to Kal Airways and Maran. They also asked the High Court to waive off 12 per cent interest on the warrant, while setting aside the 18 per cent interest granted in the award.

At 1:05 PM, SpiceJet share price was up 3.2 per cent at Rs 59 per share as against 1.2 per cent surge in the benchmark indices.

SpiceJet shares had hit a 52-week high of Rs 77.5 per share on february 5, 2024, and a 52-week low of Rs 29 on July 31, 2023.

The low-cost airline's market-cap stands at Rs 4,682 crore with a negative price-to-earnings (P/E) of 10.94x.

SpiceJet financials

On July 15, 2024, SpiceJet reported consolidated net loss of Rs 423.7 crore for the financial year 2023-24 (FY24), narrowed down from a consolidated net loss of Rs 1,513 crore in FY23. Total revenue, however, dropped around 14 per cent to Rs 8,524 crore in FY24 from Rs 9,897 crore at the end of FY23.

That said, the airline reported a net profit of Rs 126.9 crore for the March quarter of the previous fiscal (Q4FY24). This came against a net loss of Rs 6.2 crore in Q4FY23 and Rs 299 crore in Q3FY24.

Total liabilities for cash strapped SpiceJet airline was Rs 11,690.7 crore at the end of the March quarter, compared to Rs 12,420.2 crore as of December 2023.

SpiceJet fund raising plans

On July 23, 2024, SpiceJet airline's board approved to raise Rs 3,000 crore via qualified institutional placement (QIP) route.

Earlier this year, the airline's shareholders had approved the issuance of equity and warrants for raising Rs 2,241 crore, out of which the airline could raise Rs 1,060 crore.