Shares of homegrown aviation company SpiceJet Ltd plunged 8.51% today amid reports that Rakesh Gangwal of IndiGo denied that he's eying stake in the cash-strapped airline. The fall in SpiceJet shares comes after some reports last week said Gangwal might be planning to buy a stake in SpiceJet, which led to a huge surge (about 20%) in its shares.

However, the aviation tycoon has reportedly junked any such claims.

Clarifying the issue, and also informing on the increase in the volume of its securities, SpiceJet on Monday said that "presently the company is not in possession of any event or information which is ‘material’ and requires a disclosure in terms of Regulation 30 of the SEBI".

Gangwal and his wife own 13.23% and 2.99% stake in InterGlobe Aviation, the operator company of India's largest private airline IndiGo. At the end of the June quarter, the Gangwal family owned a 29.72% stake in IndiGo, including Gangwal and his wife's stakes.

In February 2022, Gangwal stepped down from the board of InterGlobe Aviation and said he would dilute his stake in the company over the next five years.

SpiceJet says that to avoid the establishment of a “false market” in its securities, it always “strives” to inform the exchange in a stipulated time, about any event or information that may have a bearing on its performance.

“There is no pending information or announcement from the company, which may have a bearing on the price behaviour in the securities of the company except submission of un-audited financial results of the company for the quarter and half year ended September 30, 2023,” says SpiceJet.

The SpiceJet stock opened a gap down at ₹42.50 today on the BSE and fell to an intra-day low of ₹38.72, taking its m-cap to ₹2,729.04 crore. Spicejet shares surged 14.20% in the past week and 4.86% in the past month. In the six-month and year-to-date period, the stock has given 24.70% and 2.41% return, respectively. In the past year, the stock has surged 3.75%.

In a separate development, SpiceJet on Monday said the airline and one of its lessors, Engine Lease Finance Corporation Aviation Services Ltd, have mutually decided to resolve their dispute through amicable means, outside of the courtroom.

"During today’s proceedings before the Delhi High Court, both parties’ legal representatives informed the court that settlement terms have been agreed and consequently, both legal teams requested an adjournment, and the Court graciously granted the adjournment, scheduling the matter to be revisited on 8 February 2024," a SpiceJet spokesperson.

Notably, SpiceJet is in desperate need of funds as the budget carrier recently made repayment of dues to the airline's former promoter Kalanithi Maran’s Kal Airways Private Ltd and international bank Credit Suisse. On September 14, 2023, the airline transferred $1.5 million to global investment bank and financial services firm Credit Suisse as per the directive issued by the Supreme Court of India. Besides, the airline made a payment of ₹100 crore to Kal Airways, as per the directions of the Delhi High Court.

For Q1 FY24, SpiceJet reported ₹205 crore profit against a loss of ₹789 crore in the year-ago period. Total operating revenue was ₹2,002 crore compared with ₹2,457 crore in the year-ago period.

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