Shares of SpiceJet Ltd closed 12 per cent higher on BSE on Monday after the company announced that it has settled its Rs 100 crore loan payment with City Union Bank. The stock surged more than 16 per cent in intraday trade on Monday from its previous close to reach a high of Rs 31.8 apiece on BSE.  

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In a filing to the stock exchanges the budget carrier announced that the last tranche of Rs 25 crore of the one-decade old loan was paid on June 30, 2023. The company had availed the Rs 100 crore loan from the City Union Bank in 2012.  

The repayment of loan to City Union Bank is a part of an agreement of the company with Nordic Aviation Capital (NAC), a major lessor of its Q400 aircrafts. SpiceJet informed the bourses that the repayment of the loan amount releases all securities that had been pledged with the bank.

“The agreement with NAC settles all past liabilities for the Q400s leased by NAC to SpiceJet and paves the way for the return and induction of three additional planes into the SpiceJet fleet," the company said.

The aviation stock has gained more than 12 per cent in the past one week and nearly 18 per cent in the past one month. However, the shares have lost 21 per cent in value in the last one-year period.

Last month, the cash-strapped budget carrier announced that its subsidiary SpiceXpress and Logistics received a 100 million investment from a UK-based group. The company had earlier hived off SpiceXpress. The airline also said that it has no plans to file for insolvency and would invest USD 50 million to revive 25 grounded planes. The United Kingdom-based SRAM & MRAM Group will invest USD 100 million in SpiceXpress.

Shares of SpiceJet closed at Rs 30.64 apiece, up 12.44 per cent, on BSE on Monday.