Spicejet has informed that it has settled with Airports Authority of India (AAI) and has cleared all the ‘principal’ dues.
- Financial difficulties of the airline are widely known. It has been defaulting/ delaying on most of it’s financial commitments.
- It was moved to ‘cash and carry system’ in airports run by the AAI.
- Spicejet has now informed that with the subject settlement, the operations have reverted back to normal and it’s out from the cash and carry system.
- AAI has also released Spicejet’s Rs 50 crore bank guarantee.
Parallely, there are rumours that the promoter, Ajay Singh is in active discussion with a Middle Easter Carrier for stake sale. An Indian conglomerate is also speculated to approach the airline for stake purchase.
It’s relevant to note here that Mr Singh currently owns 59.4% stake in Spicejet.
Are there sufficient reasons to get excited about the stock?
Personally to me not. Neither do I like the sector and nor the subject stock.
Above developments are sure to create short term excitement and FOMO in the stock.
However, to me anyone interested should be extremely cautious and diligent.