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SpiceJet in talks with investors for sustainable financing; shares jump up to 18.02%

SpiceJet in talks with investors for sustainable financing; shares jump up to 18.02%

This comment comes after news reports stated that promoter Ajay Singh is in talks for a stake sale, including with a Middle Eastern airline. Singh holds a 60 per cent stake in the airline. 

SpiceJet shares jump on Wednesday SpiceJet shares jump on Wednesday

SpiceJet, in response to media reports about a stake sale, has said that it is in discussions with various investors for sustainable financing. Shares of the low-budget airline jumped following the comment. 

“The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations,” said a SpiceJet spokesperson.

This comment comes after news reports stated that promoter Ajay Singh is in talks for a stake sale, including with a Middle Eastern airline. Singh holds a 60 per cent stake in the airline. 

Shares of SpiceJet zoomed up to 18.02 per cent to Rs 52.4 against the previous close of Rs 44.40 on BSE. The airline stock has gained 38 per cent in the last four trading sessions. 

The small cap stock is trading higher than the 5-day, 20-day, 50-day and 100-day moving averages but lower than 200-day moving averages. 

At 12:43 pm, SpiceJet stock was trading 14.19 per cent higher at Rs 50.65 on BSE. A total of 50.13 lakh shares of the firm changed hands amounting to turnover of Rs 19.75 crore on BSE. 

The low-cost airline also recently stated that it has come out of the ‘cash and carry’ arrangement it has with the Airport Authority of India (AAI). It has now entered into a full and final settlement with AAI, and has cleared all outstanding dues, said the airline. 

SpiceJet said that it will revert to an advance payment mechanism for daily flight operations. The airline added that the AAI will also release its Rs 50 crore bank guarantee as it has cleared all its principal dues. 

Market cap of SpiceJet rose to Rs 3,051 crore on BSE. However, the stock has lost 32 per cent in a year and fallen 25.48 per cent in 2022.

Also read: SpiceJet out of ‘cash and carry’ mechanism with AAI; clears all dues