SpiceJet plunges by 14% as chairman quits

The SpiceJet scrip on Monday plunged 14 per cent after the budget airline’s Executive Chairman Siddhanta Sharma resigned in the midst of the airline's talks with prospective investors for a fresh equity infusion.

On Saturday SpiceJet announced that its chairman stepped down due to personal reasons and would be relieved on July 31, 2008. Kishore Gupta, director, is likely to replace Sharma, according to the airline's executives.

The SpiceJet scrip closed at Rs 27.95 on the Bombay Stock Exchange on Monday against Friday’s closing rice of Rs 32.40, a loss of 13.73 per cent. This has caused a wealth erosion of Rs 105.76 crore with the market capitalisation (free-float) of Spicejet dropping from Rs 770.27 crore to Rs 664.51 crore.

Speaking to Hindustan Times, Sharma said, “Five months ago I had requested the board to relieve me at a time when the airline would get fresh funding. Now that time has come and within a week the picture will be clear.” “At 50, people don't retire and I will be back (in a new job) after I finish my personal work,” he added.

Sharma had joined SpiceJet, then called Royal Airways, in March 2001.