SpiceJet surges on Qatar Airways eyes stake report

At 0920 hours, around 2.17 million shares change hands on BSE against two week average of sub 0.50 million shares.

SpiceJet has surged over 5% to Rs 21.75 in early morning deals on back of heavy volumes on reports that Qatar Airways is in talks with the company to buy minority stake in Indian low cost airline.

The stock opened at Rs 21.80 and hit a high of Rs 22 so far. Around 2.17 million shares already change hands till 0920 hours against an average sub 0.50 million shares that were traded daily on BSE.

“Qatar Airways is in talks with SpiceJet for a possible acquisition of 24% stake in the Indian low cost airline. The two airlines recently signed a non-disclosure agreement but a due diligence is yet to take place, “the Business Standard report suggests.

According to sources, however, the talks were in preliminary stages and Qatar Airways might infuse $200 million in debt and equity in SpiceJet, added report.

In January this year on clarification on news report that “Qatar Airways may buy stake in SpiceJet”, the company said "Though few investors have evinced interest in the company post Government of India allowing FDI in civil aviation sector to foreign airlines, it will be very pre-mature to comment on the possibilities of any fresh equity issuance to such interested parties or confirm/deny names of any specific entity.”