SpiceJet shares this Friday saw a surge of nearly 20 percent after the Competitive Commission of India (CCI) approved Ajay Singh’s motive to acquire a majority stake in the company. The original promoter was in talks to buy 58 percent stake in the enterprise.
The approval surged the company’s shares from the opening value of Rs. 22.80 to Rs. 23.90. The airliner had an overall gain of nearly 20 percent (19.80 percent) in its shares today.
According to the reports, the revival plan will put infuse 1500 crores after Ajay Singh acquires the 58 percent stake of SpiceJet from the other leaving promoters. Company would receive the 1500 crore funding in three parts, and the first one is expected to reach by this Tuesday. As per the market status, company is estimated to have assets worth 1400 crores.
In an interview, Ajay Singh said that they are working with their creditors on payment plans. They have already got a lot of support from the creditors and stakeholders.
However, the filing that approved Ajay Singh’s proposal on SpiceJet stated as, “The company has been informed by Ajay Singh that the CCI has approved the proposed combination and acquisition of entire shareholding of Kalanithi Maran and Kal Airways (existing promoters) aggregating to 350,428,758 equity shares (58.46 per cent) by Ajay Singh, in terms of the Competition Act, 2002.”
Ajay Singh is also awaiting an approval from the Home Ministry for his appointment as a Director in the SpiceJet Board.
Apart from this company is also providing several exciting offers to its customers. Last week company was offering limited air tickets for a fare lower than the train tickets. The airliner offered nearly one lakh tickets for the domestic flights for only Rs. 599. The company was also able to provide discounts on the international flights. SpiceJet also offered a significant discount for the Valentine’s day.