SpiceJet jumped 12.5% to Rs 14.85 at 10:41 IST on BSE on reports co-founder Ajay Singh is planning to invest about Rs 1200 crore in the distressed carrier with some partners.
Meanwhile, the BSE Sensex was up 314.39 points, or 1.16%, to 27,440.96
The stock surged on high volume. On BSE, so far 1.01 crore shares were traded in the counter, compared with an average volume of 79.46 lakh shares in the past one quarter.
The stock hit a high of Rs 15.25 and a low of Rs 14.40 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 underperformed the market over the past one month till 18 December 2014, falling 8.27% compared with 3.68% fall in the Sensex. The scrip also underperformed the market in past one quarter, falling 4% as against Sensex's 0.05% rise.
The small-cap company has an equity capital of Rs 599.45 crore. Face value per share is Rs 10.
As per reports, Ajay Singh, who resigned as a director of the airline in 2010, and his partners will meet with Indian aviation ministry officials on 22 December 2014. There's no decision yet if it will involve the purchase of new shares or existing stock from majority shareholder Kalanithi Maran, reports added.
Maran had bought a majority stake in SpiceJet from its promoter Bhupendra Kansagra and distressed-assets buyout specialist Wilbur L. Ross in 2010. Ajay Singh, along with the Kansagra family had launched SpiceJet in 2005.
According to reports this week, SpiceJet's flights were grounded Wednesday, 17 December 2014, morning after oil marketing companies (OMCs) refused to provide SpiceJet with credit to buy jet fuel over the issue of non-payment of dues. The OMCs had placed the budget airline in the cash-and-carry mode under which the company has to make spot payments for buying fuel. However, SpiceJet reportedly resumed operations following an understanding with OMCs. The company stated on its website that its bookings are now open until 28 March 2015.
The no-frills carrier is facing tough business conditions and the situation has only worsened in recent days with cancellation of flights.
On Tuesday, 16 December 2014, the government reportedly provided a breather to the airline by asking the Airport Authority of India (AAI) and OMCs to give a fortnight more to the airline to pay back its dues, besides pushing the aviation regulator to relax the curbs on advance bookings beyond a month, until March 2015.
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.
SpiceJet is India's second largest airline by domestic passenger share.
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