SpiceJet rallies 15% as CCI clears deal with Ajay Singh

Till 0920 hours, 3.31 million shares already changed hands as against an average 3.2 million shares traded daily in past two weeks on BSE

Shares of SpiceJet has surged 15% at Rs 23 on BSE in early morning trade after the company said that the Competition Commission of India (CCI) has cleared Ajay Singh's proposal to acquire a majority stake in the company.

The stock opened at Rs 22.80 and touched a high of Rs 23.50 on BSE. Till 0920 hours, around 3.31 million shares have already changed hands as against an average 3.2 million shares that were traded daily in past two weeks on BSE.

“The company has been informed by Mr. Ajay Singh ("Acquirer") that the Competition Commission of India has approved the proposed combination and acquisition of entire shareholding of Mr. Kalanithi Maran and M/s. Kal Airways Private Limited (i.e. existing Promoters) aggregating to 350,428,758 equity shares (58.46%) by Mr. Ajay Singh, in terms of the Competition Act, 2002,” SpiceJet said in a BSE filing.

According to report, SpiceJet is expected to receive its first tranche of Rs 400 crore funding from new investors led by Ajay Singh on Monday (February 23), according to an Economic Times report. CLICK HERE TO READ FULL REPORT.

The new funding will help the low-cost airline clear a large chunk of its Rs 1,400 crore worth of dues, which include Rs 330 crore to state-run Airports Authority of India and about Rs 350 crore to aircraft lessors, added report.