SpiceJet shares end over 19% higher amid stake sale buzz

Shares of distressed inexpensive airline company SpiceJet ended over 19 percent greater on Friday following reports that suggested that the business remains in conversations for a possible stake sale.

IndiGo co-founder Rakesh Gangwal remains in conversations to get a considerable stake in the economically struggling domestic airline company, SpiceJet, reported ET Now.

SpiceJet shares leapt 19.39 percent to end at Rs 43.60 each, following the report. It had actually climbed up as much as 20 percent to strike a 52-week high of Rs 43.82 throughout the trading session.

A possible stake sale might come as a big relief for the financially-troubled airline company, which has actually been actively looking for financing as it fights with financial resources to keep operations afloat and pay back financial obligation.

The airline company has actually been having a hard time to keep operations for a considerable part of its grounded fleet due to extreme competitors in the air travel sector.

Since September-end, SpiceJet’s market share had actually been up to 4.4 percent from 7.3 percent at the end of January. SpiceJet has actually formally talked about any continuous conversations about a prospective stake sale to the IndiGo co-founder.

It might be kept in mind that Rakesh Gangwal, who, in addition to his partner Shobha Gangwal, holds a 16.22 percent stake in IndiGo’s moms and dad business, InterGlobe Aviation, might be checking out chances with SpiceJet.

Shares of IndiGo’& rsquo; s parent company, InterGlobe Aviation, likewise settled 1 percent greater on Friday.