SpiceJet revival plan on the cards?
Moneylife Digital Team 26 December 2014

SpiceJet is expected to submit the revival plan to the government today, which would include new investors

 

The SpiceJet stock opened the day with a sharp gap up of around 10% and stayed around 7% above its previous closing price for today's session on the Bombay Stock Exchange. 
 
The renewed enthusiasm was as a result of reports that the SpiceJet management was ready with a new revival plan, which it would submit to the Civil Aviation Ministry today.
 
Reports suggested that the airline would get investments from co-founder and current co-promoter Ajay Singh with further investment from American bank JP Morgan Chase. 
 
The two parties are expected to buy Kalanithi Maran's stake in the airline, which would help pump in around Rs1,200 crore and help the airline survive the current rough weather.
 
All officials and executives connected to the deal were understandably cagey about putting anything on record, but the market reacted positively to the news. This would also mean that more government money would not be pumped into the airline.
 
It is possible that if these deals go through, the Indian Civil Aviation space will have prevented losing another airline to financial troubles.
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