SpiceJet rallies over 9% on fund infusion plans by Indigo Partners

NEW DELHI: SpiceJet rallied as much as 9.2 per cent in trade on Wednesday, after ET Now reported that US based private equity firm Indigo Partners, is the anchor investor in Ajay Singh-led consortium to buy the airliner.

At 02:50 p.m.; the stock was trading 6.2 per cent higher in a weak market at Rs 17.75. It hit a low of Rs 17 and a high of Rs 18.30 in trade today.

TPG Capital and JPMorgan Infrastructure Fund are the other two funds in the consortium. Sources indicate that the consortium could be investing a total amount of Rs 1400 crore, added the report.

Indigo Partners' involvement is key to the deal, said a source, as it has investments in global airlines and understands the operations. Other funds will go ahead with the deal if Indigo Partners signs up for it, a source shared.

The US based equity funds are currently conducting due diligence on SpiceJet. ET Now also learns that Indigo Partners may back Ajay Singh to own 26 per cent in SpiceJet to have considerable authority in the company.