Rakesh Gangwal doesn’t wish to invest in SpiceJet, says report

A day after it was reported that IndiGo co-founder and former promoter Rakesh Gangwal is planning to pick up a stake in low-cost carrier SpiceJet, a banker close to him on Saturday rubbished the claims and said that Gangwal has no intentions to do so.

As per the latest company data, Gangwal and his wife Shobha Gangwal held 13.23 per cent (5,10,21,132 shares) and 2.99 per cent stakes, respectively in IndiGo operator InterGlobe Aviation as of June-end, while the family-owned Chinkerpoo Family Trust holds a 13.5 per cent stake. 

The banker, speaking to the Economic Times, said Gangwal still owns 25 per cent of IndiGo and doesn’t have any interest in investing more in SpiceJet.

“He still owns 25% in IndiGo. It doesn’t make the remotest sense for him to invest in SpiceJet...Moreover, he sees SpiceJet as a dying airline,” said the banker.

Shares of SpiceJet Ltd rallied nearly 18 per cent in Friday's trade after ET Now reported that Gangwal was in advanced stage of talks to acquire a stake in the BSE-listed firm. 

Gangwal “is upset that retail investors are misguided thus, He would like to appeal to the Sebi to investigate the root of such baseless rumours,” the banker added.

SpiceJet has been facing some financial hurdles and was placed under "enhanced surveillance" by the aviation regulator.

In September, SpiceJet completed the payment of Rs 100 crore to former promoter Kalanithi Maran's KAL Airways after high court asked the carrier to pay at once. The airline noted that it had "made a payment of Rs 77.5 crore" on September 11 and the remaining payment of Rs 22.5 crore was completed on September 12.

Operation Ajay

Air India and SpiceJet will operate one flight each to Tel Aviv on Saturday to bring back Indians amid escalating tensions due to the conflict between Israel and Hamas, according to officials.

These chartered flights will be operated under Operation Ajay, which the government has launched to facilitate the return of those who wish to come back from Israel.

The officials in the know said Air India will be operating a flight from the national capital to Tel Aviv while SpiceJet will operate a flight from Amritsar to Tel Aviv. Both flights are expected to return and land at the Delhi airport on Sunday morning, they added.

One of the officials said Air India is scheduled to operate another flight to Tel Aviv on Sunday.

Also read: SpiceJet shares rally 18% on report Rakesh Gangwal in talks to buy stake

Also read: Supreme Court allows SpiceJet to seek modification in Bombay HC order on re-hiring staff