SpiceJet shares surge over 8 % on stake sale buzz

PTI Updated - March 12, 2018 at 04:00 PM.

spice_jet

Shares of SpiceJet today 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 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 off-load 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 per cent fall in its net profit in the June quarter.

“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.

Published on August 7, 2013 08:25