SpiceJet rallies on stake sale buzz

SpiceJet has rallied nearly 6% to Rs 37.65 on reports that the company is in advanced talks with two private equity investors to raise at least $50 million via stake sale.

According to a news report published in Wall Street Journal, "the deal for a stake sale, with either one or both investors, could be completed within the next two months, said the person, who didn't want to be named. One of the investors is a large US private equity fund, the person said without elaborating."

"A senior-level SpiceJet executive, who spoke on the condition of anonymity on Monday, said any fresh money raised would likely be used to fund the airline's fleet expansion. SpiceJet needs up to $100 million immediately to make part payment for its $446 million-order for 15 Q400 turboprop planes from Bombardier Inc.," report adds.

The stock opened at Rs 35.45 and touched the intra-day high of Rs 39.80. 9.9 million shares have already shanged hands compared to 10 million shares which were traded daily in the past two weeks.