Continuing its plunge for the fourth straight session today, shares of SpiceJet tanked 17 per cent even as the beleaguered company got a breather with indications that state-run Airports Authority of India would not press for immediate clearance of Rs 200 crore dues.
Amid continued sluggish investor sentiment for the shares of the Kalanithi Maran-led company, SpiceJet plunged 16.97 per cent to Rs 11.25 at the BSE.
In four trading sessions, the stock has crashed over 25 per cent, eroding Rs 216.63 crore from its market value.
Marketmen said that the stock is witnessing a downtrend amid mounting troubles for the cash-strapped budget carrier.
With closure staring at its face, SpiceJet last night got a breather with indications that state-run Airports Authority of India would not press for immediate clearing of Rs 200 crore dues after the airline’s promoter Kalanithi Maran gave personal guarantees to infuse more funds.
The development took place after the no-frill airline’s Chief Operating Officer Sanjiv Kapoor met Civil Aviation Minister Ashok Gajapathi Raju last evening, with official sources saying that the government has asked it to continue operations over the next fortnight.
The sources indicated that the AAI, which had given time to SpiceJet till yesterday to clear its dues, would not press the deadline and give the airline more time to pay up.
They said the airline’s promoter Maran has given “personal guarantees” to infuse more funds into the cash-strapped carrier.
The airline sought urgent financial help from the government to run its daily operations but received no categorical assurances from it.
The airline’s total liability stands at over Rs 2,000 crore and it needs at least Rs 1,400 crore immediately to keep it off the ground.
The no-frills carrier is facing tough business conditions and the situation has only worsened in recent days with flights cancellation.