Spicejet hits air pocket

Spicejet is not having a good run today. The stock is currently down 2.4% at Rs.26.75. Its 52-week low is at Rs.24.50. Volumes are muted at over 4 lakh shares.

The stock is down on news that its CEO, Neil Mills has resigned. This came as an abrupt shock as its been only 18 months or so since he took over and much ahead of the expiry of his contract.

Two reasons were cited for this. One is that the performance of the company has been in shambles, wherein for Q4FY13, is posted a much higher net loss at Rs.186 crore and with results for Q1 due in about a fortnight. But many feel this could not be the reason as the entire aviation sector is in trouble and its not Spicejet alone thus he cannot be held responsible for this loss in Q4.

The other reason being stated is that this resignation could be a precursor to a deal being finalized. All the reasons are pure speculation but as of now, the market is worried with this uncertainty creeping up on the counter.