STATESMAN NEWS SERVICE
Mumbai, 15 July
SpiceJet share today soared more than 8.1 per cent on renewed speculation that Kuwait Airways is interested in buying 25 per cent stake in the low-cost carrier. The carrier uses Chennai as its hub and is seen as a potential competitor of soon-to-take-off AirAsia India, a joint venture with 30 per cent participation of the influential Tata Group.
SpiceJet, however, was instant with its clarification, which says: “The news report suggesting that a stake sale in SpiceJet is being considered to inject Kuwait Airways as a strategic partner is totally untrue and without any substance.”
Notwithstanding the candid rebuttal, the share of the airline, controlled by Tamil Nadu’s Maran family, traded high throughout the day in Bombay.
The deal, aviation experts say, may fetch Rs 1,000 crore for SpiceJet which is working on a strategy to blunt the impact of AirAsia India’s high-flying campaign in the run-up to the actual take-off.
Dalal Street sources ascribe the spike in SpiceJet share to civil aviation minister Ajit Singh’s recent passing remark that SpiceJet and GoAir are in talks with potential investors following the relaxed FDI guidelines for the domestic aviation sector. The share ended strong on the BSE at Rs 29.90, up 7.94 per cent. Spicejet share has not been traded on the NSE for last 30 days.