IndiGo co-founder Rakesh Gangwal in talks to buy stake in SpiceJet: Report

IndiGo co-founder Rakesh Gangwal is in advanced stage of talks to buy a 'sizable' stake in SpiceJet, a report said on Friday.

The news report by ET NOW sent shares of SpiceJet up about 18%, while IndiGo shares rose 0.7%.

Gangwal and his wife Shobha Gangwal hold 13.23% and 2.99%, respectively, in IndiGo operator InterGlobe Aviation, as of June-end, while their Chinkerpoo Family Trust holds a 13.5% stake, according to exchange data.

Cash-strapped SpiceJet, which is "struggling to stay afloat", has been scrambling to raise funds and restore operations for about a fourth of its fleet that has been grounded amid fierce competition in the sector.

SpiceJet, whose market share slid to 4.4% as of September-end from 7.3% at the end of January, did not immediately respond to Reuters' request for comment on the report.

With inputs from Reuters