Ajay Singh to take back control of Spicejet; stock likely to react positively

MUMBAI: Ajay Singh, co-founder of Spicejet will be once again be at helms of wobbly Spicejet.

The company has taken on record the proposal of promoter Kalanithi Maran and KAL Airways to transfer the ownership, management and control of the company to Singh.

KAL Airways and Marans own 53.48 per cent stake in the company. Ajay Singh and US-based JPMorgan are in talks with regulator Sebi over their investment plan, say reports.

According to analysts, this is a positive development and means stability for Spicejet. Steep fall in crude prices augurs well for the aviation industry. The stock is likely to react positive and open gap-up tomorrow.

SL Narayanan, CFO Sun Group, said the deal will help save jobs and make operations profitable.

"Ajay Singh will be able to managae Spicejet better," he told ET Now.

Sun Group also will infuse fresh capital and own 10 per cent warrants post stake sale. It will continue to remain a minority share-holder in the company.