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Spicejet investors may consider exiting

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 9:23 PM IST

While officials concerned remained tight-lipped, sources in the know of the deal gave enough indication that talks were on with Reliance ADAG and Naresh Goyal-led Jet Airways.     

The reports about a possible deal pushed up Spicejet shares by over 14 per cent during the day to close at Rs 35.95 raising the company's value at current stock price to Rs 865.14 crore.     

The appreciation in the company's share prices comes on a day when industry leaders like Jet and Deccan (now owned by Vijay Mallaya promoted Kingfisher Airlines) lost up to 3 per cent in a weak market.     

Sources said as the airline is doing well and is on an expansion mode, different people have been approaching it with various proposals to buy out some promoters and investors.     

While Rs 755 crore may not be the right price, but if the valuation goes up to Rs 1,000 crore and beyond, the investors or even promoters could be interested in exiting the airline, the sources added.     

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When contacted Ajay Singh, Director, Spicejet, did not take any query on the issue, including whether he has also been approached by any prospective buyers.     

In the meantime, Spicejet in a communication to stock exchanges said, "the company has till date not received any formal communication from any party" on reports that 'Anil Ambani is in race to buy out Spicejet'.

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First Published: Jun 06 2008 | 6:27 PM IST

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