SpiceJet stock edges up even as Carlyle Aviation offloads 1.4% stake

SpiceJet stock has rallied more than 72 percent in the last one year, beating Sensex's returns of 30 percent during this period.

Shares of cash-strapped carrier SpiceJet gained on September 26 even as Ireland-based aircraft lessor Carlyle Aviation Management offloaded its 1.42 percent stake in the company via open market transactions.

The stake was cut between September 17 and 23 wherein more than 1.81 crore shares with voting rights were sold under the transaction. Carlyle now hold 2.99 crore shares in the air carrier. Carlyle's stake in SpiceJet had increased as part of the beleaguered airliner's debt-restructuring process.

Earlier this month, Carlyle Aviation had written off $40.17 million in lease arrears, converting $30 million of lease dues into equity in SpiceJet at Rs 100 per share, and converting another $20 million into compulsorily convertible debentures (CCDs) of its cargo arm, SpiceXpress & Logistics Private Limited.

Carlyle has been converting its pending lease payments into equity purchase in the airline some time. In August last year, the lessor had adjusted outstanding dues worth $28 million for a stake of 5.9 percent in the airline.

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SpiceJet also recently announced a key resolution in its ongoing legal battles by settling its $16.7 million dispute with Engine Lease Finance Corporation (ELFC). The settlement amount remains undisclosed but is lower than the original claim, marking a significant breakthrough for the airline in clearing its financial hurdles, suggested reports.

Representatives from both SpiceJet and ELFC are preparing to formalise the agreement, which will effectively conclude all legal disputes between the two parties. As part of this resolution, ongoing litigation will be withdrawn, the airline informed stock exchanges. This marks a key milestone in SpiceJet’s efforts to restructure its operations and prioritise long-term growth.

At 9:42 am, SpiceJet shares were trading a percent higher at Rs 63.06 on BSE. So far this year, the stock has gained just 4 percent, compared to an 18 percent rise in benchmark Sensex. In the last one year, however, the counter has rallied more than 72 percent, beating Sensex's returns of 30 percent during this period.

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