Mumbai: Shares of SpiceJet fell sharply by 10 per cent on Wednesday and hit the lower circuit at Rs 12.88 on the BSE. This is the airline’s lowest stock price in more than 11 years.
The fall came after heavy block deals triggered strong selling pressure in the stock.
Massive Block Deals & High Volumes
Nearly 8.4 per cent of the company’s total equity changed hands during the trading session, according to media reports.
About 128.6 million shares were traded through 17 block deals, making SpiceJet one of the most active stocks of the day.
Trading volumes were more than 16 times the three-month average, showing intense activity and strong selling in the counter.
By 11 am, the stock was locked at the lower circuit limit.
Seven-Day Fall, 25 percent Weekly Drop
The decline marked the seventh straight day of losses for the airline’s shares.
In the past one week alone, the stock has fallen nearly 25 per cent. It emerged as the worst performer on the BSE SmallCap index during the day.
Technical indicators also showed extreme weakness. The 14-day Relative Strength Index (RSI) dropped to 9.01, which signals heavy overselling in the stock.
Expansion Plans Continue
The sharp fall comes even as the airline recently announced expansion plans.
Last week, SpiceJet said it is working to increase its fleet size to around 60 aircraft through wet and damp leases. The company is also bringing back grounded aircraft into service.
The airline said its domestic market share improved to 4.3 per cent in December, up 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 (ASK) by Winter 2026.
Operational Challenges Remain
Despite expansion efforts, operational issues continue. Reports suggest that Bangladesh has barred SpiceJet from using its airspace due to pending dues.
As a result, some flights from Kolkata, including services to Guwahati, are taking longer routes, increasing operational strain.
Disclaimer: This report is based on publicly available information and media reports. It is for informational purposes only and does not constitute investment advice. Investors should consult certified financial advisors before making decisions.
