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SpiceJet surges 16 per cent on BSE

Shares of Spicejet touches an intra-day high of Rs 34.45, amid reports that the pvt carrier has decided not to exit the airline business.
PTI | By HT Correspondent, Mumbai
UPDATED ON JUL 09, 2008 03:28 PM IST

Shares of Spicejet on Wednesday surged 16 per cent amid reports that the promoters of the private carrier have decided not to exit the airline business for the time being.

Fuelled by the news report, shares of Spicejet rose 15.80 per cent to touch an intra-day high of Rs 34.45. Over 20.75 lakh shares changed hands on the Bombay Stock Exchange.

Shares were later trading 9.08 per cent up at Rs 32.45 in the afternoon trade on the BSE.

The report stated that the management of SpiceJet is unlikely to change for the time being, but preferential allotment to a US investor is on the cards.

"The main shareholders (Kansagra family) are not exiting the company now," the report stated.

As of March quarter, SpiceJet promoters holds 12.91 per cent stake in the low cost budget carrier.

The scrip had yesterday lost 2.3 per cent to settle at Rs 29.75, upon reports that a private equity firm led by billionaire Wilburn Ross is looking to pick up a stake in the company.

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