Spicejet claims it has cleared pending employee provident fund dues; shares recover 5% from day’s low | Company Business News
Budget carrier SpiceJet has said that it has cleared all the pending employee provident fund (PF) dues amounting to ₹160.07 crore for over two years.
In the past three months, SpiceJet said in a statement on Friday, December 13, the airline raised ₹3,000 crore through qualified institutional placement (QIP), which has helped to clear pending dues such as employee salaries, tax deducted at source (TDS), and GST.
Spicejet’s share price surged over 5 per cent from its intraday low amid this announcement on December 13. The shares were trading at ₹58.44 on the BSE at 2.45 pm, 1.12 per cent higher or ₹0.65 higher than the previous day’s close.
SpiceJet said it expects to save significantly on interest payments as well and has been using internal cashflows to clear statutory obligations such as PF and TDS payments.
“We are pleased to announce the clearance of all pending employee PF dues. This marks a new chapter in SpiceJet’s journey. By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees,” Chairman and Managing Director of SpiceJet, Ajay Singh, said.
“With the successful implementation of our financial turnaround strategy, we are confident in our ability to continue delivering superior service to our customers and achieving sustainable growth,” he added.
SpiceJet’s legal issues
The airline also claimed it had resolved multiple disputes with aircraft lessors and other creditors, significantly improving its balance sheet.
SpiceJet was dealing with legal issues over unpaid dues to air aircraft lessors, vendors and suppliers. It also faced contempt notices from the National Company Law Tribunal and Delhi High Court. The market share of airlines has shrunk in the last five years to 3.8 per cent of the domestic aviation market in June 2024 from 4.4 per cent in June 2023 and 15.6 per cent in June 2019, Mint reported on August 14, 2024.
