SpiceJet rallies over 10% on reports of fund infusion plans by JPMorgan

NEW DELHI: SpiceJet Ltd rallied as much as 10.4 per cent in trade on Friday, after a fund managed by JPMorgan Chase is in advanced discussions to team up with Ajay Singh to invest around $200 million (Rs 1,200 crore) in cash-strapped airliner.

The move will help the ailing airline to take off again, ET reported quoting multiple sources aware of the ongoing discussions.

At 09:50 a.m.; SpiceJet was trading 7.9 per cent higher at Rs 19.05. It hit a low of Rs 18.65 and a high of Rs 19.50 in trade today.

On Tuesday, Tanmaya Misra, Mumbai-based managing director of JPMorgan's Asian Infrastructure fund, accompanied Singh, a co-founder of the airline, to meet senior aviation ministry officials to submit a revival blueprint, added the report.

"They (JPMorgan) have shown interest in the airline and talked about investing about $200 million along with Ajay Singh. All of these are under discussions at various levels," said a government source.

SpiceJet has debts of Rs 1,600 crore on December 5 which had prompted aviation regulator DGCA to put them under heightened surveillance.