Millennium Post

SpiceJet shares down 16% on ‘crisis’ reports

SpiceJet shares fell sharply by over 16 per cent on Wednesday amid reports that the carrier is facing financial crisis. Shares of SpiceJet tanked 16.17 per cent to close the day at Rs 14 on the BSE. In intra-day, it slumped 18.56 per cent to Rs 13.60.

The market value of the company fell by Rs 143.61 crore to Rs 749.39 crore.

As per media reports, the airline is faltering over distributing TDS (tax deducted at source) certificates and Form 16 (needed for filing tax returns) to its employees, also an engineering audit has been ordered by the aviation regulator. The Directorate General of Civil Aviation (DGCA) has ordered an engineering audit of the airline after the carrier is said to have found it difficult to provide equipment to operate some flights.

As to reports on financial trouble, a SpiceJet spokesperson had on Tuesday said, ‘These matters are privileged and cannot be discussed in the media. We are well aware of our obligations under the applicable law but we are answerable only to the appropriate statutory authorities.’ 

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