SpiceJet flies high on Tata stake buy

DALAL STREET SPIKES

SpiceJet remained a bright spot among mayhem in the market, closing at Rs 58, up 8.51 per cent due to massive volumes of 42 lakh.

The surge was powered primarily by reports that Tatas picked up around 10 per cent in SpiceJet through an investment arm of the group.

After the preferential issue to the Tatas, the promoter holding is expected to come down to 15.69 per cent from 16.86 per cent. SpiceJet's Director Ajay Singh's stake will come down to 5.04 per cent.

The investment, which Tatas say is merely of financial interest, would enable SpiceJet to raise much needed funds to upgrade technology and improve reservation, customer support and airport facilities.

For the first quarter ended August, the company reported a net loss of Rs 178.1 crore compared with a net loss of Rs 10.81 crore in the same quarter last year.