Budget airline SpiceJet saw shares plunge 11% on Wednesday on reports that the Directorate General of Civil Aviation (DGCA) had placed the company under enhanced surveillance.

What Happened? The move comes as SpiceJet encounters financial headwinds, with several lessors seeking repossession of leased aircraft. While the airline refutes these claims, a senior official has confirmed the heightened monitoring by the DGCA, PTI reported.

The DGCA’s enhanced surveillance has been ongoing for more than three weeks, encompassing increased night surveillance and spot checks, the official told the news agency.

See Also: Why Is EaseMyTrip Share Price Rising Today?

SpiceJet has been facing several financial challenges, including grounded aeroplanes and troubles with aircraft lessors.

SpiceJet’s spokesperson has denied the reports, stating that the information is “absolutely incorrect,” and the airline has not received any communication from the DGCA regarding enhanced surveillance.

SpiceJet recently appointed travel booking platform EaseMyTrip as its general sales agent for select market segments in India. This strategic partnership aims to bolster the promotion and sale of SpiceJet’s products and services in the targeted markets.

Price Action: SpiceJet shares had tumbled around 11% to ₹28.29 but has since recovered, trading 3.2% lower than its last closing price at ₹28.89.

Read Next: Infosys Puts Pay Hikes On Hold Amid Macroeconomic Stress: Report