Shares of SpiceJet take off, rallies 15 per cent amid news of stake sale by promoter

The shares of SpiceJet Ltd zoomed 12.27 per cent in today’s session to emerge among the biggest gainers in the “A” Group.

The shares of SpiceJet Ltd zoomed 12.27 per cent in today’s session to emerge among the biggest gainers in the “A” Group. 

The stock zoomed in the limelight on the possibility of a partial stake sale by its promoter Ajay Singh who holds 59.4 per cent of the equity capital of the company. The company’s poor financial standing makes a strong case for urgent funding to maintain its operations. 

The company announced on August 2 that it has entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator. With this, SpiceJet will no longer remain on ‘cash and carry’ at AAI-run airports across the country and will revert to an advance payment mechanism for daily flight operations. 

It further informed that AAI will release SpiceJet’s Rs 50 crore bank guarantee following the airline clearing all its principal dues which will bring additional liquidity for the airline. 

With improved market sentiment, shares of SpiceJet went soaring on the bourses, logging an intra-day high of Rs 52.40, 18 per cent above its previous close of Rs 44.40. On July 28, the shares of SpiceJet touched its 52-week low of Rs 34.60. 

At the closing bell, shares of SpiceJet quoted at Rs 49.85, up 12.27 per cent or Rs 5.45 from its previous close. 

 Investors should keep an eye on SpiceJet Ltd to know if it continues the positive momentum since the beginning of this week.