SpiceJet Shares Drop 2% After Airline Settles $16.7 Million Dispute
SpiceJet reached an amicable settlement, for a lower amount with Engine Lease Finance Corp.
Shares of SpiceJet fell as much as 2.18% after the airline announced it had reached an amicable settlement with Engine Lease Finance Corp. regarding a $16.7 million dispute. The two parties have agreed to resolve the issue, but did not disclose the amount settled upon, the airline said in a statement viewed by Bloomberg.
Engine Lease Finance had initially claimed $16.7 million from SpiceJet, but agreed to settle for a lower amount, according to the statement. Representatives from both companies will now work on formalising the settlement agreement and withdrawing all ongoing litigation to conclude the disputes.
SpiceJet stock fell as much as 2.18% during the day to Rs 68.75 apiece on the NSE. It was trading 1.31% lower at Rs 69.36 apiece, compared to an 0.10% advance in the benchmark BSE Sensex as of 10:17 a.m.
It has risen 96.46% in the last 12 months and 15.36% on a year-to-date basis. The relative strength index was at 55.94.
One out of the four analysts tracking SpiceJet has a 'buy' rating on the stock, two recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 36.5%.
