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

Shares of SpiceJet Ltd rallied nearly 18 per cent in Friday's trade amid a media report suggesting the co-founder of airline IndiGo, Rakesh Gangwal, was in advanced advanced stage of talks to acquire a stake in the BSE-listed firm. Gangwal held 5,10,21,132 shares or 13.23 per cent stake in InterGlobe Aviation Ltd at the end of June quarter.

Last month, SpiceJet complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse. The payment was executed on September 14. Also SpiceJet made a payment of Rs 100 crore to Kal Airways Private Limited, as per the directions of the Delhi High Court.

The fresh report by ET Now citing sources suggested that SpiceJet was looking to revive the airline. Following the development, the stock rose 17.74 per cent to hit a high of Rs 43 on BSE.

For the June quarter, SpiceJet logged a net profit of Rs 205 crore compared with a loss of Rs 789 crore in the corresponding quater of last year, thanks to strong air travel demand. It also registered industry's highest domestic load factor of 90 per cent in the June quarter.

Lessor petitions for insolvency against SpiceJet is pending at NCLT Mumbai. The ET NOW report noted that Celestial Aviation has moved NCLT for a default of $20.9 million fo nine aircrafts against SpiceJet. Other lessors like Willis lease, Aircastle and Wilmington have also moved NCLT Mumbai against SpiceJet, the report suggested.

Also read: Hot stocks on October 13, 2023: Adani Enterprises, Phoenix Mills, Infosys, Piccadily Agro, RailTel and more    

Also read: Servotech shares rebound 4%; company signs MoU to develop 1,000 EV charging stations