SpiceJet shares take off 8% on settling $16 mn dispute with Genesis

Shares of SpiceJet rallied up to 7.85 per cent at SpiceJet per share on the BSE in Thursday’s intraday deals. SpiceJet share price surged after the company reached an amicable settlement with Genesis, resolving their over $16 million dispute. 

 

Under the agreement, the commercial aircraft leasing company Genesis will receive $6 million from SpiceJet and  will acquire $4 million in SpiceJet equity at a price of Rs 100 per share, the company said in a statement on Thursday. 

 

Over the course of time, SpiceJet has reached similar settlements with several lessors, following successful resolutions with companies such as 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 agreed to convert $30 million of lease arrears into SpiceJet equity at Rs 100 per share, reflecting growing confidence in the airline’s financial and operational recovery.  

 

“This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet,” said Ajay Singh, Chairman and Managing Director, SpiceJet. 

 

Indian low-cost airline SpiceJet, headquartered in Gurugram, last reported a 20 per cent year-on-year decline in consolidated net profit, which fell to Rs 158.1 crore in the first quarter of FY25. The airline’s total income also decreased by 8.3 per cent year-on-year, reaching Rs 2,077.7 crore in Q1FY25.

 

Meanwhile, on the equities side, SpiceJet’s stock has underperformed the market, as in the last six months it has surged 12 per cent, while falling 9 per cent in the last one year. In comparison BSE Sensex has risen 2 per cent in the last six months and 10.8 per cent in a year. 

 

The company has a total market capitalization of Rs 7,692.68 crore. At 11:39 AM; the shares of the company were up 6.97 per cent at Rs 60.20 a piece. By comparison, the BSE Sensex was trading 1.02 per cent lower at 79,364.22 level.