Spicejet surges over 13% as foreign airlines eye stake

MUMBAI: Shares of Spicejet surged over 13 per cent in intraday trade following reports that foreign airlines have shown interest in buying stake in the debt-ridden airline.

The stock rallied 13.78 per cent to touch intraday high of Rs 24.35.

The stock ended the day at Rs 23.50; up 9.81 per cent, on the BSE.

According to reports, promoter Ajay Singh has said Spicejet was in dialogue with other airlines, but strategic stake sale was premature at the moment.

"We have offers for strategic sale, there's no doubt about it," Singh said, according to Reuters. "We feel it's a little premature for a strategic sale to be happening here."

Meanwhile, Ajit Singh has increased service payment to Airports Authority Of India (AAI) after infusing Rs 500 crore equity in the company.

According to reports, the airline is now paying Rs 75 lakh per day to the airports operator against Rs 70 lakh per day. Spicejet total outstanding towards AAI now stands around Rs 297 crore.