Shares of SpiceJet were down 5 percent as domestic and international flights remain suspended amid COVID-19 outbreak. The stock touched lower circuit of Rs 35.15 per share.
HDFC Trustee Company has bought 3.4 crore shares of SpiceJet from the open market constituting 5.45 percent of the airline. "The country's biggest mutual fund buying a substantial stake shows that it has some confidence in the airline coming out of the present crisis that the aviation industry finds itself in," said an industry executive.
In such times, HDFC Trustee's investment in SpiceJet is seen as a boost of confidence for the airline's management and investors.
On the other hand, the share price of HDFC was down 11 percent and was quoting at Rs 1,559.35, down Rs 194.75, or 11.10 percent. It has touched an intraday high of Rs 1,698.55 and an intraday low of Rs 1,549.
Rating agency CRISIL has downgraded the rating for Spicejet short term loans from "BB-" to "B" on significant deterioration of business risk profile. It has also cut the outlook in rating from positive to negative.
Aviation Ministry has allowed the use of passenger aircraft for cargo movement. IndiGo and GoAir have expressed interest in cargo movement.
SpiceJet said on March 29 that one of its pilots who did not fly any international flight in March has tested positive for the coronavirus. "One of our colleagues, a first officer with SpiceJet, has tested positive for COVID-19. The test report came on March 28. He did not operate any international flight in March 2020," a spokesperson of the airline told PTI.
SpiceJet was quoting at Rs 35.25, down Rs 1.75, or 4.73 percent. It has touched an intraday high of Rs 37.00 and an intraday low of Rs 35.15.