(Reuters) - Shares of SpiceJet Ltd surged 9% on Thursday following reports the Indian budget carrier is likely to receive an additional loan of 10 billion rupees ($122.7 million) 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.
Spicejet did not immediately respond to a Reuters request for comment.
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 Oct. 29.
As of 0514 GMT, shares of the carrier were up 6.1% at 40.8 rupees. The stock marked its sharpest intraday percentage gain since Aug. 5.