SpiceJet shares rally 14% on hopes of bailout from co-founder Ajay Singh

SpiceJet shares rallied 14 per cent on reports that its Co-founder Ajay Singh plans three-phased investment in SpiceJet.The stock was up 14 per cent 18.20 per cent on the Bombay Stock Exchange. The stock is not listed on the National Stock Exchange.

According to reports in the Mint, Ajay Singh, a co-founder of SpiceJet Ltd, plans to invest as much as Rs.1,300 crore in the distressed carrier with some partners, a person with direct knowledge of the matter said. Singh, who resigned as a director of the airline in 2010, and his partners will meet with Indian aviation ministry officials on 22 December.

SpiceJet has been in the news as some of its aircrafts were grounded and on reports that funding and credit facilities to the airline had been withdraw.

Several reports had suggested that the carriers founder Ajay Singh planned to reinvest money in the ailing airline.

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Story first published: Monday, December 22, 2014, 12:10 [IST]

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