Shares of the financially troubled low-cost airline, SpiceJet, concluded the trading session on Friday with a remarkable surge of over 19 percent. This surge was driven by reports suggesting that discussions were underway regarding a potential stake sale in the airline.
According to reports, Rakesh Gangwal, one of the co-founders of IndiGo, is actively engaging in discussions to acquire a significant stake in SpiceJet, which has been grappling with financial difficulties. In response to this development, SpiceJet shares exhibited a notable increase, ultimately closing at Rs 43.60 per share, marking a significant rise of 19.39 percent. Notably, during the trading session, these shares soared by as much as 20 percent, reaching a 52-week high at Rs 43.82.
This prospective stake sale could represent a substantial relief for SpiceJet, which has been facing significant financial challenges, striving to secure funding to sustain its operations and manage its debt obligations. In recent times, the airline has encountered substantial difficulties, including maintaining operations for a considerable portion of its grounded fleet, partly attributed to intense competition within the aviation sector.
As of the end of September, SpiceJet's market share had dwindled to 4.4 percent, down from 7.3 percent in January, underscoring the need for financial intervention. SpiceJet has refrained from making official comments regarding ongoing discussions regarding a potential stake sale to Rakesh Gangwal, a notable figure in the aviation industry.
It is important to recognize that Rakesh Gangwal, who, along with his spouse Shobha Gangwal, holds a 16.22 percent stake in IndiGo's parent company, InterGlobe Aviation, is reportedly exploring opportunities with SpiceJet. This development has had a ripple effect, with shares of InterGlobe Aviation, the parent company of IndiGo, concluding the trading session with a 1 percent gain on Friday.
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