SpiceJet: Investors’ confidence in low fare airline company SpiceJet is being restored again. Due to this confidence on Friday, SpiceJet shares rose by five percent from the day’s lowest level. The biggest reason for the sudden increase in investor confidence in SpiceJet is a claim made by this company on Friday. It has been claimed by SpiceJet company that it has paid Rs 160 crore seven lakh PF dues of its employees. Investors have believed this claim of the company and as the credibility increased, the result came in the form of a rise in the shares.
Refund of Rs 3,000 crore from institutional investors
To repay Rs 160 crore of PF dues of its employees, SpiceJet has raised Rs 3,000 crore from qualified institutional investors. On Friday, the company informed that apart from the PF dues, the dues of salary, TDS and GST of the employees have also been settled with the funding of institutional investors. The amount received from investors has also helped in compensating the interest on the company’s loan and creating cash flow within the company. SpiceJet Chairman Ajay Singh said that with this we are going to take better steps towards the welfare of the employees and provide superior service to the air passengers.
SpiceJet struggling with legal disputes
SpiceJet company is also facing many types of legal disputes. The company has also faced issues related to contempt of the National Green Tribunal and the Delhi High Court. Apart from this, due to many other problems, the market share of this airline has decreased from 4.4 percent to 3.8 percent in the last five years by June 2023. Earlier, SpiceJet’s market share in the domestic aviation market was 15.6 percent in June 2019.
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