Mumbai: Erasing steep initial losses, shares of SpiceJet ended with over 2.5 percent gain Tuesday after the company got a breather as the Airports Authority indicated that it would not press for immediate clearance of its Rs 200 crore dues.
After falling sharply by 16.97 percent to Rs 11.25 in intra-day trade, shares of SpiceJet finally ended at Rs 13.90, up 2.58 percent from its previous close on the BSE.
Fag-end buying in the stock helped it close in the green.
On the volume front, 362.51 lakh shares of the company changed hands at the BSE during the day.
The stock was falling for the last three sessions, down over 16 percent.
With closure staring at its face, SpiceJet last night got a breather with indications that the Airports Authority of India would not press for immediate clearing of Rs 200 crore dues after the airline's promoter Kalanithi Maran gave personal guarantees to infuse more funds.
The development took place after the no-frill airline's Chief Operating Officer Sanjiv Kapoor met Civil Aviation Minister Ashok Gajapathi Raju last evening, with official sources saying that the government has asked it to continue operations over the next fortnight.
The sources indicated that the AAI, which had given time to SpiceJet till yesterday to clear its dues, would not press the deadline and give the airline more time to pay up.
They said the airline's promoter Maran has given "personal guarantees" to infuse more funds into the cash-strapped carrier.
The airline sought urgent financial help from the government to run its daily operations but received no categorical assurances from it.
The airline's total liability stands at over Rs 2,000 crore and it needs at least Rs 1,400 crore immediately to keep it off the ground.
The no-frills carrier is facing tough business conditions and the situation has only worsened in recent days with flights cancellation.
