Shares of SpiceJet Ltd surged about 9%, on Thursday, after a report said that the Indian budget airline carrier is expected to receive an additional ₹10 billion loan under the Government's modified Emergency Credit Line Guarantee Scheme.
The Government, on Wednesday, enhanced the maximum loan amount eligibility for airlines under the scheme to 100% of their loan outstanding to help the companies tide over cash-flow problems.
The funds will help the airline clear its dues, pay lessors on time, and induct new Boeing 737 Max planes, Business Standard newspaper reported, citing sources.
The airline is currently operating less than 50% of its approved flights, following an order from the Directorate General of Civil Aviation due to multiple incidents involving its aircraft.
Bankers have also been contacted to raise $200 million, Mint reported, citing an airline official.
The report comes two weeks after the air safety watchdog extended a restriction on SpiceJet's flight departures until October 29.
As of 0514 GMT, shares of the carrier were up 6.1% at ₹40.8. The stock marked its sharpest intraday percentage gain since August 5.