SpiceJet gains on securing regulatory approvals

SpiceJet advanced 1.81% to Rs 22.50 at 10:32 IST on BSE after the company received approvals from various regulatory authorities for the takeover of its ownership, management and control by Ajay Singh.

The announcement was made during market hours today, 23 January 2015.

Meanwhile, the S&P BSE Sensex was up 226.93 points or 0.78% at 29,232.95

On BSE, so far 38.61 lakh shares were traded in the counter as against average daily volume of 1.21 crore shares in the past one quarter.

The stock hit a high of Rs 22.95 and a low of Rs 22.30 so far during the day. The stock had hit a 52-week low of Rs 11.10 on 13 August 2014. The stock had hit a 52-week high of Rs 24.10 on 20 January 2015.

The small-cap company has equity capital of Rs 599.45 crore. Face value per share is Rs 10.

Spicejet said that the company has yesterday, 22 January 2015 received the approval of the Competent Authority, the Ministry of Civil Aviation, Government of India for the 'Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet by Ajay Singh in accordance with the application made by the company.

It may be recalled that SpiceJet had earlier this month said that the company's board of directors at a meeting held on 15 January 2015, considered the proposal of the principal shareholder and promoter, Kalanithi Maran and KAL Airways to transfer the ownership, management and control of the company to Ajay Singh pursuant to a scheme of reconstruction and revival for the takeover of ownership, management and control of the company to be filed before the Ministry of Civil Aviation, Government of India.

As on 30 September 2014, Kalanithi Maran and KAL Airways collectively owned 53.48% stake in SpiceJet.

SpiceJet reported a net loss of Rs 310.45 crore in Q2 September 2014, lower than net loss of Rs 559.49 crore in Q2 September 2013. Net sales rose 15.2% to Rs 1435.86 crore in Q2 September 2014 over Q2 September 2013.

SpiceJet is India's second largest airline by domestic passenger share.

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