SpiceJet's share dip a day after DGCA puts it under "enhanced surveillance"

SpiceJet shares dipped 2.95 per cent to Rs 28.97 in morning deals on the BSE.

The DGCA on Tuesday announced that it had put struggling airline Spicejet under "enhanced surveillance" w.e.f from June 22. Photo: PTI

SpiceJet shares fell 2.95 per cent a day after aviation regulator DGCA put the airline under "enhanced surveillance". The airline, which has been facing financial headwinds, however, denied the news. SpiceJet shares are trading 2.95 per cent down to Rs 28.97 in morning deals on the BSE.

The DGCA on Tuesday announced that it had put struggling airline Spicejet under "enhanced surveillance" w.e.f from June 22.

The Directorate General of Civil Aviation (DGCA) puts an airline under enhanced surveillance to ensure that financially struggling airlines do not compromise on maintenance and safety.

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The Supreme Court dealt a blow to Ajay Singh-led Spicejet last month when it ordered the airline to pay Rs 380 crore to its former promoter Kalanithi Maran and his Kal Airways in a case dating back to 2016 about a share transfer dispute between Ajay and Maran.

Ajay had taken over the airline from Maran in 2015.

The DGCA's decision also came at a time when many lessors are seeking repossession of aircraft leased to SpiceJet.

Amid such a backdrop, ZeeBiz takes you through some of the most prominent aviation stocks today.

SpiceJet

The decision seems to have little impact on Spicejet, as the share price is 0.67 per cent down to Rs 29.83 as of writing.

The share, which started its day at Rs 29.85, also reached at Rs 30.85 at 9:15 am before falling.

However, it is yet to be seen how the news will impact the health of the share for the rest of the day. In the last five days, the share price has dipped 2.09 per cent.

Interglobe Aviation Ltd

Interglobe Aviation Ltd, the parent company of IndiGo Airline, started its day on a high note as its share price jumped 0.79 per cent to Rs 2,723.75 from Tuesday's closing price of Rs 2,719.70.

The airine has recently added three new routes from Pune to Jodhpur, Rajkot, Vadodara, while it has also started a flight between Kanpur to New Delhi.

Jet Airways

Jet Airways' share had a weak opening on the BSE today as its share is trading down 1.67 per cent to Rs 44.20 from Tuesday's closing price of Rs 44.20.

The decline came a day after its creditors told the Supreme Court on July 19 that the grounded airline's resolution plan approved by the National Company Law Tribunal (NCLT) was not workable.

Creditors have also asked the airline to wind up operations.

However, in its response to creditors, Jalan Kalrock Consortium (JKC), the winning bidder for Jet Airways, said that it would revive the airline as per the NCTL's approved resolution plan and was fully committed to it.

The share has not been performing well for quite a long time, as in just one month, it has lost 14.06 per cent of its value.

Jet Airways creditors have called for the grounded airline to be wound up, telling the Supreme Court on July 10 that the resolution plan approved by the National Company Law Tribunal (NCLT) was not workable.

TAAL Enterprises Ltd

TAAL Enterprises also started the day on a high note as its share price jumped 1.70 per cent to Rs 1827.80 almost an hour after the market opened on Wednesday. The airline's share was at Rs 1,818.95 at close on Tuesday. The share of the airline has been performing well for almost a week as it has jumped 6.47 per cent in the last five days.

Global Vectra Helicorp

India's largest private helicopter company of India, Global Vectra Helicorp, is also trading at a high of 1.04 per at Rs 71.89. The share closed at Rs. 70.85 on Tuesday. But it has lost 1.18 per cent of its value in the last five days.

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