SpiceJet jumps on hopes for foreign investment

Reuters Market Eye - Shares in SpiceJet Ltd gained 3.9 percent after earlier rising as much as 8.5 percent on continued hopes the carrier could attract foreign investments.

Civil aviation minister Ajit Singh, answering a question on Etihad's proposed deal to buy a minority stake in Jet Airways India Ltd , said foreign direct investment in local airlines generally is a "welcome step," as the sector battles with stretched financials and banks unwilling to lend.

Singh added that other domestic airlines were in talks with potential investors, and named SpiceJet and unlisted GoAir. He later clarified he was referring to media reports on the companies, and hence not on direct knowledge.

 

SpiceJet had said in January it received some interest from potential investors, but it would be premature to discuss the possibility of any concrete investments.

(Reporting by Abhishek Vishnoi)