SpiceJet shares zoom 9% on revival plan reports

Shares of SpiceJet surged nine per cent on Friday following reports the budget carrier would give a revival plan to the government on the basis of a proposed investment of $200 million from founding promoter Ajay Singh and US-based JPMorgan Chase.

The scrip jumped 9.07 per cent to settle at Rs 19.25 on the BSE. During the day, it gained 11 per cent to Rs 19.60. In terms of volume, 31.17 million shares of the company changed hands on the BSE during the day.

SpiceJet would submit a revival plan to the government today on the basis of a proposed investment of USD 200 million from founding promoter Ajay Singh and US-based JP Morgan Chase, official sources had said yesterday.

The potential investors are likely to buy stake from current promoter Kalanithi Maran by infusing USD 200 million within a month to help the airline stay afloat. Besides Singh, a fund managed by JP Morgan Chase would also be one of the investors, official sources had said.

The airline has already received Rs 17 crore from the investors, the sources had said, adding that "it has wiped off all its dues to the oil companies".

The no-frill carrier's dues to foreign and Indian vendors, airport operators and oil companies had grown from Rs 990 crore to Rs 1,230 crore between November 24 and December 10, as per data provided by the airline to the Civil Aviation Ministry.