SpiceJet rallies 10% on fund infusion plans by January 10

NEW DELHI: SpiceJet Ltd rallied as much as 9.9 per cent in trade on Friday after potential investors in the airliner, led by former promoter Ajay Singh, have submitted a rescue plan for the troubled airline to the civil aviation ministry.

The plan includes an initial investment by Saturday, January 10, and substantial equity infusion in a month's time, ET reported quoting a senior ministry official.

At 10:00 a.m.; SpiceJet was trading 9.9 per cent higher at Rs 18.30. It hit a low of Rs 17.90 and a high of Rs 18.30 in trade today.

The airline also renewed bank guarantees to the Airports Authority of India (AAI) worth about Rs 15 crore, by another three months, a move intended to reassure the state-owned airports operator and the aviation ministry of the new investors' commitment to clear past dues.

ET's efforts to reach Ajay Singh were unsuccessful while SL Narayan, Sun Group's CFO, did not take calls.

Earlier this week, in a report on January 5, ET had said the deal seemed to be floundering as the new investors led by Ajay Singh played hardball with Kalanithi Maran, SpiceJet's current promoter, on the question of servicing dues run up by the airline, which came to about Rs 700 crore.