Shares of SpiceJet on Wednesday jumped over 8 per cent following reports that the company is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale.
Reacting to this, shares of the company made a bullish opening on BSE and further surged 8.1 per cent to Rs 27.35. On the volume front, 21.41 lakh (2.14 million) shares of the company changed hands on BSE.
No-frills carrier SpiceJet is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale even as they are set to sign a code share agreement soon, sources said.
According to sources, SpiceJet promoter and media baron Kalanithi Maran may offload up to 24 per cent to Tigerair as the airline faces fall in profits and attempts to retire debt, the sources familiar with the development said.
The Chennai-based airline reported a 10
"SpiceJet and Tigerair have already held two rounds of talks for a possible equity deal as promoter Maran is looking for the FDI route for further funds infusion," sources said.
The discussions between the two on code-share are at the concluding stage and an announcement to this effect may come in any time now, according to sources.
Code share is a commercial agreement between two airlines transferring seats among themselves from one destination to another.
At close, SpiceJet shares were up 5.53 per cent to Rs 26.70 at the BSE. During the day, shares of the private carrier jumped 8.1 per cent to Rs 27.35.
In terms of volume, 32.60 lakh shares of the company changed hands on the BSE during the day.
The broader market was weak, with the BSE benchmark Sensex ending the day at 18,664.88, down 68.16 points.
