Shares of SpiceJet on Wednesday jumped over 8% following reports that the company is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale.
Reacting to this, shares of the company made a bullish opening on BSE and further surged 8.1% to Rs 27.35.
On the volume front, 21.41 lakh shares of the company changed hands on BSE.
No-frills carrier SpiceJet is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale even as they are set to sign a code share agreement soon, sources said.
According to sources, SpiceJet promoter and media baron Kalanithi Maran may offload up to 24% to Tigerair as the airline faces fall in profits and attempts to retire debt, the sources familiar with the development said.
The Chennai-based airline reported a 10% fall in its net profit in the June quarter.
"SpiceJet and Tigerair have already held two rounds of talks for a possible equity deal as promoter Maran is looking for the FDI route for further funds infusion," sources said.
The discussions between the two on code-share are at the concluding stage and an announcement to this effect may come in any time now, according to sources.
Code share is a commercial agreement between two airlines transferring seats among themselves from one destination to another.