Mumbai: Shares of low-cost airline SpiceJet were in demand Friday, rising over 3 percent, amid media reports of stake sale.
The stock ended the day 3.24 percent higher at Rs 23.90 on the BSE. During the day, it surged 7.55 percent to Rs 24.90.
On the volume front, 104.33 lakh shares of the company changed hands at the BSE during the day.
"SpiceJet soared on the bourses today after market reports that the airline is in talks with Qatar Airways for a possible stake sale to the gulf airline," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio Ltd.
According to media reports, SpiceJet is in early stage of talks with Qatar Airways for a commercial tie-up including a possible stake sale to the Gulf-based airline.
Meanwhile, SpiceJet today said a few potential investors are currently in "exploratory and preliminary" discussion with it, evincing interest to invest in the no-frills carrier while denying reports of entering into any commercial tie-up with any airline.
"A few parties have approached us and evinced interest in making investments into SpiceJet Limited. The deliberations with the potential investors, however, are only at an exploratory and preliminary stage," SpiceJet said in a regulatory filing.
However, since the deliberations with such prospective investors are at an exploratory and preliminary stage it will be improper to comment on the specifics of any possible stake sale or the valuation of the company at this stage, it said.
The reports also stated that negotiations will initially involve SpiceJet signing an interline agreement with the Gulf-based carrier.
Interestingly, Akbar Al Baker, group chief executive officer of Qatar Airways, had on several occasions shown interest in picking up stakes in the largest domestic airline by market share, IndiGo.
The Gurgaon-headquartered airline also clarified that it has not entered into any interline arrangement with any other airline as reported in a section of media.
