In fact, because of the fierce rivalry in the aviation industry, the airline has been battling to keep running for a sizable chunk of its grounded aircraft.
Digital Desk: Following reports that the firm is in talks for a potential stake sale, shares of troubled low-cost airline SpiceJet ended the day Friday nearly 19% higher.
Rakesh Gangwal, a co-founder of IndiGo, is in talks to purchase a sizable share in SpiceJet, a domestic airline that is having financial difficulties, according to ET Now.
Following the publication of the news, SpiceJet shares increased 19.39% to close at Rs. 43.60 per. It had increased by as much as 20% during the trading session, reaching a 52-week high of Rs. 43.82.
For the financially precarious airline, which has been aggressively seeking funds as it struggles with money to keep operations afloat and service debt, a potential stake sale may be a major relief.
In fact, because of the fierce rivalry in the aviation industry, the airline has been battling to keep running for a sizable chunk of its grounded aircraft.
SpiceJet's market share decreased from 7.3% at the end of January to 4.4% as of September's end. SpiceJet has made a formal statement on any ongoing discussions regarding a prospective stock sale to the co-founder of IndiGo.
It should be noted that Rakesh Gangwal, who has a 16.22% share in InterGlobe Aviation, the parent firm of IndiGo, along with his wife Shobha Gangwal, may be looking into business options with SpiceJet.
InterGlobe Aviation, the parent company of IndiGo, saw its shares end the day Friday with a 1% rise.
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