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Aviation shares extend rally; SpiceJet zooms 90% in one month

SpiceJet locked in upper circuit of 10% at Rs 47.55, its fresh 52-week high on the BSE.

Aviation shares extend rally; SpiceJet zooms 90% in one month
SI Reporter Mumbai
Last Updated : Oct 19 2015 | 1:12 PM IST
Shares of aviation companies, such as Jet Airways (India) and SpiceJet, have rallied up to 10% on the BSE after no-frills carrier IndiGo's parent InterGlobe Aviation fixed the price band for its proposed initial public offer (IPO).

After a prolonged wait, InterGlobe -- which is running the country's most profitable carrier under the brand name, IndiGo -- will be hitting the market for its little over Rs 3,200-crore IPO on October 27.

The company has fixed the price band for its initial share sale at Rs 700-765, through which it could raise up to Rs 3,268 crore. The IPO will be the largest in nearly three years.

Meanwhile, Wadia Group-promoted budget carrier GoAir is also planning to go for an IPO in the current fiscal.

Among the individual stocks, SpiceJet was locked in upper circuit of 10% at Rs 47.55, its fresh 52-week high on the BSE. The stock has zoomed 90% in past one month from Rs 25 and 111% from its recent low of Rs 22.50 on September 7.

Till 09:55 am, about 3.17 million shares changed hands and there were pending buy orders for 2.55 million shares on the BSE.

Shares of Jet Airways (India) has surged 9% to Rs 418 on the BSE on back of heavy volumes. A combined 4.33 million shares already changed hands in first 45 minutes of trade against an average sub-three million shares that were traded daily in past two weeks on the BSE and NSE. The stock rallied 26% in past one month.

Analysts expect that increase in passenger load and lower aviation fuel costs would help boost profits in the second quarter ended September 2015. Aviation fuel comprises about 40% of an airline's operational costs.

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First Published: Oct 19 2015 | 10:04 AM IST

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