SpiceJet shares slump nearly 6 pc as DGCA places carrier under enhanced surveillance

New Delhi, Aug 30 (PTI) Shares of SpiceJet ended nearly 6 per cent lower on Friday after aviation watchdog DGCA decided to place the crisis-hit firm under enhanced surveillance.

The stock declined 5.54 per cent to settle at Rs 62.56 apiece on the BSE. During the day, it tanked 6.40 per cent to Rs 61.99.

The company's market valuation eroded by Rs 290.21 crore to Rs 4,964.50 crore.

DGCA on Thursday decided to place SpiceJet under enhanced surveillance that will entail increased spot checks and night surveillance to ensure safety of the airline's operations.

Based on reports of cancellation of flights and financial stress being experienced by SpiceJet, DGCA said it conducted a special audit of the airline's engineering facilities on August 7 and 8 and certain deficiencies were found during the audit.

"In light of the past record and the special audit carried out in August 2024, SpiceJet has once again been placed under enhanced surveillance with immediate effect.

"This would entail an increase in the number of spot checks/night surveillance with a view to ensure safety of operations," the Directorate General of Civil Aviation (DGCA) said in a release on Thursday.

In 2023 also, the regulator had placed SpiceJet under enhanced surveillance.

The no-frills carrier has been grappling with multiple headwinds, including financial and legal woes, and is also in the process of raising funds. PTI SUM SUM SHW