Report Wire - ‘SpiceJet CMD Singh in talks to pare stake’

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‘SpiceJet CMD Singh in talks to pare stake’

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SpiceJet, Spicejet airlines, SpiceJet crisis, SpiceJet dues, Business news, Indian express business news, Indian express, Indian express news, Current Affairs

The promoter of beleaguered service SpiceJet, Ajay Singh, is known to be in discussions with a mid-eastern service and an Indian conglomerate for a attainable stake sale within the low-cost airline, individuals conversant in the event indicated. Singh, who can also be the CMD, holds a reasonably large stake of near 60 per cent in SpiceJet, which has accrued losses of an estimated Rs 5,000 crore and a detrimental internet value.

The airline has been bleeding and wishes heavy capital infusion. “The new promoters would need to inject a large amount of capital to revive the business. In this context, the equity has little value,” an analyst defined.

The SpiceJet inventory rallied on Wednesday after the information of the potential sale broke and ended at Rs 50.05 apiece on the BSE, up 12.73 per cent over the earlier shut. When contacted, a spokesperson for the airline mentioned: “The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations.”  FE

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