The Indian budget carrier is likely to receive this additional loan of Rs 1,000 crore under the recent modifications in government’s Emergency Credit Line Guarantee Scheme (ECLGS).
SpiceJet shares surged as much as 9 per cent to hit an intraday high of Rs 42 on the BSE on Thursday after report of Rs 1,000 crore government loan surfaced. The Indian budget carrier is likely to receive additional loan of Rs 1,000 crore under the recent modifications in government’s Emergency Credit Line Guarantee Scheme (ECLGS). Since the airline has reportedly been in need of these funds, the positive news sent SpiceJet’s shares soaring.
This movement in SpiceJet’s shares comes a day after the government announced an enhancement in the maximum loan amount eligibility for airlines. Under the scheme, these airlines are now eligible for 100 per cent of their loan outstanding and as per reports, this has been done to help the companies deal with cash-flow problems.
The additional funds, if managed by SpiceJet, would help the airline clear all its dues. In addition to this, it would also help the company pay lessors on time and induct new Boeing 737 Max planes, Business Standard reported citing sources.
The ECLGS news also comes as a positive development for the company as the budget airline has been operating less than 50 per cent of its approved flights. Due to multiple incidents and alleged malfunctions, the airline had to comply with an order from the Directorate General of Civil Aviation (DGCA) to operate with limited planes.
As of 1:26 pm, SpiceJet shares were up 6.1 per cent at Rs 40.8, which also marked the stock’s sharpest intraday percentage gain since August 5, 2022.