Shares of SpiceJet Ltd. surged over 6 per cent in the early trade on the Bombay Stock Exchange (BSE) after the news that the draft Cabinet note from Department of Industrial Policy and promotion on 49 per cent FDI in aviation is being circulated and will be up for approval shortly.
According to the note, the 49 per cent FDI would bring foreign investment and would strengthen the sector by introducing Indian airlines to the international best practices and policies.
Accepting a major demand of the debt-ridden industry, the government on January 17 had decided to launch the process to allow foreign airlines 49 per cent stake in Indian carriers.
Bolstered by the news, shares of SpiceJet Ltd. touched an intraday high of Rs 29.15 and an intraday low of Rs 27.80. It was currently trading at Rs 28.65, up 4.9 per cent on Bombay Stock Exchange (BSE).
Meanwhile, the broader benchmark Sensex was quoting at 17,113.08, down 30.76 points at 10:15 hours.