SpiceJet rose 4.14% to Rs 18.85 at 11:24 IST on BSE on reports potential investors have begun discussions with markets regulator over their investment plan for the cash-strapped airline.
Meanwhile, the BSE Sensex was up 528.42 points, or 1.93%, to 27,875.24.
On BSE, so far 51.34 lakh shares were traded in the counter, compared with an average volume of 1.13 crore shares in the past one quarter.
The stock hit a high of Rs 19.45 and a low of Rs 18.50 so far during the day. The stock hit a 52-week high of Rs 22.20 on 26 May 2014. The stock hit a 52-week low of Rs 11.10 on 13 August 2014.
The stock had outperformed the market over the past one month till 14 January 2015, rising 23.13% compared with 0.01% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.16% as against Sensex's 3.79% rise.
The small-cap low-cost air carrier has an equity capital of Rs 599.45 crore. Face value per share is Rs 10.
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Signalling an imminent change in SpiceJet's ownership, potential investors including co-founder Ajay Singh and US-based JPMorgan have reportedly begun discussions with the Securities and exchange board of India (Sebi) over their investment plan for the cash-strapped low-cost air liner.
According to reports, investors are consulting Sebi with regard to various regulations applicable to a listed company in case of fresh infusion of funds by entities other than existing promoters, as also about the change in ownership and management. Besides, the investors are also seeking regulatory guidance about applicability of open offer and takeover code related norms, as well as about classification of promoter and public shareholders in a listed company, reports added.
It is being anticipated that the investment plan for SpiceJet could involve complete exit of Kalanithi Maran-led group as promoters of the airline, if not immediately then over a period of time, reports said.
As on 30 September 2014, promoters hold 53.48% stake in SpiceJet while major 'public' shareholders include Tata group firm Ewart Investments (1.79%) and Kalpana Singh (1.41%). Retail investors hold 45.69% in the company.
SpiceJet, which is now operating about 200 flights a day, ha reportedly renewed its bank guarantee to Airports Authority of India (AAI). A move intended to reassure the state-owned airports operator and the aviation ministry of the new investors' commitment to clear past dues, reports said.
SpiceJet is facing tough business conditions and the situation has only worsened in recent days with disruption of flights. The cash crunch reportedly forced the airline to delay salaries to employees in December 2014.
SpiceJet reported a net loss of Rs 310.45 crore in Q2 September 2014, lower than net loss of Rs 559.49 crore in Q2 September 2013. Net sales rose 15.2% to Rs 1435.86 crore in Q2 September 2014 over Q2 September 2013.
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