SpiceJet Shares Plummet Amid Enhanced DGCA Surveillance

SpiceJet shares fell by nearly 6% following the DGCA's decision to place the airline under enhanced surveillance. The stock price tumbled to Rs 62.56 on BSE, causing a market valuation loss of Rs 290.21 crore. This move follows a special audit revealing operational deficiencies.

SpiceJet shares experienced a significant decline on Friday, falling nearly 6%, after the Directorate General of Civil Aviation (DGCA) announced enhanced surveillance of the crisis-stricken airline. The stock closed at Rs 62.56 on the BSE, marking a 5.54% drop, and had hit a low of Rs 61.99 during the day.

The airline's market valuation was eroded by Rs 290.21 crore, bringing it down to Rs 4,964.50 crore. This development came after the DGCA conducted a special audit of SpiceJet's engineering facilities on August 7 and 8, finding several deficiencies. Enhanced surveillance will now include increased spot checks and night surveillance to ensure operational safety.

SpiceJet, already struggling with financial and legal issues, faced a similar enhanced surveillance in 2023. The company is currently attempting to raise funds to mitigate these headwinds.

(With inputs from agencies.)