SpiceJet flies high on paying $22.5 million to resolve $90.8 million EDC dispute
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SpiceJet is currently trading at Rs. 56.86, up by 1.49 points or 2.69% from its previous closing of Rs. 55.37 on the BSE.
The scrip opened at Rs. 56.30 and has touched a high and low of Rs. 57.20 and Rs. 54.24 respectively. So far 3003324 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 79.90 on 16-Sep-2024 and a 52 week low of Rs. 37.88 on 16-Nov-2023.
Last one week high and low of the scrip stood at Rs. 60.74 and Rs. 52.80 respectively. The current market cap of the company is Rs. 7312.02 crore.
The promoters holding in the company stood at 29.13%, while Institutions and Non-Institutions held 31.24% and 39.63% respectively.
SpiceJet has fully settled a $90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a total of $22.5 million, now paid in full by the airline. This resolution marks a significant milestone for SpiceJet, resulting in a substantial saving of $68.3 million (Rs 574 crore). The agreement represents one of the largest settlements in SpiceJet’s history, strengthening the airline’s fiscal position, eliminating a significant liability from its balance sheet and paving the way for sustained growth and operational efficiency.
As per the terms of the agreement, SpiceJet has acquired full ownership of 13 EDC? financed Q400 aircraft. The transfer of ownership of these 13 planes will result in a substantial reduction in operational costs, strengthening the airline’s operational capabilities and fleet management. It also brings long?term financial benefits, relieving SpiceJet from the obligation of monthly rental payments for these aircraft and further reinforcing the airline’s financial stability.
SpiceJet is among the first private companies that stepped into the Indian aviation sector.
