SpiceJet adds 18% on Ajay Singh's partial stake sale buzz; up 41% in 4 days

A big Middle Eastern airline has expressed interest to pick a 24 per cent stake and a board seat in SpiceJet, reports said

SpiceJet
SpiceJet
SI Reporter Mumbai
2 min read Last Updated : Aug 03 2022 | 12:00 PM IST
Shares of SpiceJet moved higher by 18 per cent to Rs 52.40 on the BSE in Wednesday's intra-day trade amid heavy volumes on report that the company's promoter Ajay Singh is exploring possibility of a partial stake sale in the company. Currently, Ajay Singh and his family hold 59.40 per cent stake in SpiceJet.

At 11:36 AM, stock of the airline company was trading 16 per cent higher at Rs 51.60, as compared to 0.52 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped over six-fold with a combined 30.12 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.

A big Middle Eastern airline has expressed interest to pick a 24 per cent stake and a board seat in SpiceJet, IANS reported quoting sources. A big Indian business conglomerate has also approached Singh for a stake in the airline, the news agency said. CLICK HERE FOR FULL REPORT

Meanwhile, in the past four trading days, the market price of SpiceJet has zoomed 42 per cent on the back of positive developments. The stock has recovered 51 per cent from its 52-week low level of Rs 34.60, touched on July 28, 2022.

SpiceJet, on Tuesday, said it has entered into an agreement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator.

"With this, SpiceJet will no longer remain on 'cash and carry' at AAI run airports across the country and will revert to advance payment mechanism for daily flight operations. SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in the recent times," the company said in a press release.

AAI will release SpiceJet's Rs 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline, the company said. The Centre-run AAI had in 2020 put SpiceJet on a 'cash and carry' basis as the carrier was unable to clear its previous dues.

On Monday, SpiceJet said that flight operations remain absolutely normal. "The company is operating with excellent loads and the daily ticket bookings remain strong. “Our load factor on July 30, 2022 and July 31, 2022 was 81 per cent and 82.4 per cent respectively," the company said.
 


One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Buzzing stocksSpiceJetMarkets

Next Story