SpiceJet surges 6% on reports of stake sale talks

Stocks

oi-Sneha

By Sneha B K

Updated: Wednesday, September 26, 2012, 16:13 [IST]

SpiceJet surged 6% on reports that the company is raising minimum of $50 million via stake sale from two private equity.

The shares of the SpcieJet was seen trading higher by 6.61% to Rs 37.90 on BSE at 11.14 am IST. It touched intra-day high of Rs 39.80.

As per news published in Wall Street Journal "the deal for a stake sale, with either one or both investors, could be completed within the next two months, said the person, who didn't want to be named. One of the investors is a large US private equity fund, the person said without elaborating,"

"A senior-level SpiceJet executive, who spoke on the condition of anonymity on Monday, said any fresh money raised would likely be used to fund the airline's fleet expansion. SpiceJet needs up to $100 million immediately to make part payment for its $446 million-order for 15 Q400 turboprop planes from Bombardier Inc.," it further added.

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