Why are SpiceJet shares rising today? GST dues, salary clearance and QIP

SpiceJet said that it has cleared all of its Goods and Services Tax (GST) dues as it maintains financial discipline and regulatory compliance. The airline, in a statement, informed that the payment of GST dues follows SpiceJet’s recent successful Qualified Institutional Placement (QIP) which raised INR 3000 crore. The QIP witnessed interest of top-tier institutional investors and funds, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund and Discovery Global Opportunity Ltd.
Ajay Singh, Chairman, Managing Director of SpiceJet, said, “We are proud to have cleared all GST dues, a significant step towards reinforcing our commitment to financial discipline and regulatory compliance. These developments reflect our commitment to providing exceptional service to our passengers while positioning ourselves strategically for the future.”
This comes after the budget airlines announced this week that it had resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC had previously claimed USD 16.7 million and the settlement has been reached for an undisclosed amount- lower than the initial claim.
The airline also cleared all pending salary dues of its employees after SpiceJet said it owed ₹118.9 crore to its employees as on September 15, 2024. The airlines then said that it plans to clear the dues using funds from the QIP.