SpiceJet shares crash 10 pc to 11-year low as 8.4 pc equity changes hands in block deals

Mumbai: Shares of SpiceJet crashed 10 per cent on Wednesday, hitting the lower circuit after heavy block deals on the BSE triggered massive selling in the counter.

Nearly 8.4 per cent of the airline’s equity changed hands during the session, according to media reports.

Around 128.6 million shares were traded through 17 block deals, making it one of the most active stocks of the day.

Trading volumes were more than 16 times the three-month full-day average — indicating intense activity and strong selling pressure.

By 11 am, the stock was locked at Rs 12.88 per share, its lowest level in more than 11 years.

The fall marked the seventh straight session of decline for the airline’s shares. Over the past week alone, the stock has dropped about 25 per cent, emerging as the worst performer on the BSE SmallCap index during the day.

Technical indicators suggest extreme weakness in the stock. The 14-day Relative Strength Index (RSI) fell to 9.01.

The sharp fall comes despite the airline recently outlining plans to expand its operations.

Last week, SpiceJet said it is working to increase its fleet size to around 60 aircraft through a mix of wet and damp leases. The company is also in the process of bringing back grounded aircraft into service.

The airline said its domestic market share improved to 4.3 per cent in December from 1.9 per cent in September.

This growth was supported by a 56 per cent rise in capacity during the December quarter.

SpiceJet has also set a target to more than double its capacity to 220 crore Available Seat Kilometres by Winter 2026.

However, operational challenges continue to weigh on the company. According to reports, Bangladesh has barred SpiceJet from using its airspace over pending dues.

As a result, some flights from Kolkata, including services to Guwahati, are now operating on longer routes, adding to operational strain.

IANS