Shares of domestic carrier SpiceJet soared over 15 per cent in early trade on Bombay Stock Exchange (BSE) in anticipation of inducting a strategic investor after rival Jet Airways announced 24 per cent stake sale to Abu Dhabi-based Etihad Airways for about Rs 2,058 crore.
Jet-Etihad deal is the first by an overseas operator in an Indian airline since ownership rules were relaxed and provides India's largest carrier with a deep-pocketed global partner as well as cash to retire debt.
The deal sets a valuation benchmark for further investment in Indian airlines, with budget carrier SpiceJet frequently the subject of stake sale reports.
Riding high on stake sale hopes, shares of company gained as much as 15.2 per cent to trade at Rs 36.00 a piece on the BSE.
Meanwhile, the broader benchmark Sensex was quoting at 19,311.64, up 132.28 points or 0.69 per cent at 10:30 hours.