SpiceJet surges 10% as former promoter takes charge

SpiceJet is locked in upper circuit of 10% at Rs 20.50 on BSE with no sellers on the counter after Kalanithi Maran and his associates had decided to transfer the ownership and management control of the airline to former promoter Ajay Singh and a clutch of investors.

Till 0932 hours, about 2.38 million shares changed hands and there are pending buy orders for 4.74 million shares on BSE.

SpiceJet in a BSE filing said that “the board of directors of the company at its meeting held on January 15, 2015, has taken on record the proposal of the principal shareholder and Promoter, Mr. Kalanithi Maran and KAL Airways Private Limited to transfer the ownership, management and control of the Company to Mr. Ajay Singh pursuant to a ‘Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited’ to be filed before the Competent Authority, the Ministry of Civil Aviation, Government of India.”

Maran and his associate company KAL Airways will transfer their 58% stake to Ajay Singh, who will replace Maran as the company’s chairman; Business Standard report suggests quoting unnamed sources.