SpiceJet takes off on stake sale reports to Qatar Airways

MUMBAI: Shares of low cost carrier SpiceJet surged higher in trade today on reports that Qatar Airways may pick some stake in it.

"FDI in SpiceJet is likely to happen in this quarter itself. The airline is in talks with some foreign airlines and one more investor," reported TOI quoting sources.

The percentage of stake sale that is being discussed and the valuation is not known yet.

SpiceJet, which is engaged in a constant battle with Air India for the number three slot in terms of domestic market share, has a market capitalization of Rs 2,133 crore.

The aviation ministry has not officially been informed of an impending stake sale in the LCC to a foreign airline, unlike the Jet-Etihad talks which have now been confirmed by Naresh Goyal's carrier to the BSE.

"The information we have gathered is that SpiceJet may be selling stake to Qatar Airways but we are waiting for a word from the airline," said a senior official.

At 10:15 a.m.; the stock was at Rs 46.50, up 5.56 per cent, on the BSE. It touched a high of Rs 47.80 and a low of Rs 46.20 in trade today.