SpiceJet Shares Tumble After Senior Executives Resign

 Shares of SpiceJet fell 9.7 percent to ₹54.6 per share today after Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia reportedly resigned. The company said that this was part of SpiceJet's strategic restructuring, adding, “As part of SpiceJet's strategic restructuring, several members of the commercial team including the Chief Commercial Officer have left the company. "It added, "With the recent fund raise, SpiceJet has speeded up the process of resolution of all past disputes. The Company looks forward to adding capacity, growing rapidly and continuing to play a large role in the Indian aviation sector.”

In the past one month, SpiceJet's stock has declined 13 percent. In February, SpiceJet shares hit a 52-week high of ₹77 apiece. Earlier, SpiceJet secured investments totaling ₹1,060 crore through a preferential issue. Earlier on March 7, SpiceJet said it has settled a dispute involving Rs 413 crore with aircraft leasing firm Echelon Ireland Madison One Ltd, making it the third dispute settlement to be announced by the crisis-hit carrier in less than two weeks. The latest settlement will result in savings of USD 48 million (Rs 398 crore), the airline said in a statement. 

As part of the settlement of the Rs 413-crore dispute, SpiceJet will acquire two airframes. Generally, an airframe is an aircraft without engines. The airline, which is facing multiple headwinds and is in the process of raising funds, is acquiring a total of three airframes through the three dispute settlements. The airframes are of Boeing 737 NG planes. SpiceJet recently secured investments totalling Rs 1,060 crore through a preferential issue, with notable investors including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited. Part of these funds will be allocated towards settling past liabilities. The airline reportedly plans a Rs 22.50 billion fundraising effort by selling shares and warrants. According to reports, SpiceJet is of the view that the raised funds are expected to play a pivotal role in financing operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.