Shares of low-cost carrier Spicejet tanked over 11 percent on October 16 after Rakesh Gangwal of IndiGo dismissed the reports claiming that he is looking to acquire a stake in debt-laden SpiceJet.
On October 13, reports of Gangwal considering buying a stake in SpiceJet sent the domestic carrier's shares soaring. The stock had zoomed nearly 20 percent during the day on claims that the former IndiGo promoter is looking to commit to a stake acquisition in the debt-ridden company.
However, after bankers close to Rakesh Gangwal rubbished the claim, stating that he was not remotely interested in making an investment in SpiceJet, the stock plunged on October 16.
Spicejet shares recovered mildly in noon deals, and at 12:35 pm, the stock was trading at Rs 39.79 on NSE, down 8 percent from the previous day’s closing.
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Gangwal is reportedly upset since the rumours "misguided" retail investors, according to the banker. He is even considering requesting market regulator Sebi to probe into the matter, the banker added.
Gangwals’ stake in IndiGo
As of June 2023, Rakesh Gangwal and his wife Shobha Gangwal hold 13.23 percent and 2.99 percent stake, respectively, in IndiGo operator InterGlobe Aviation. Meanwhile, their Chinkerpoo Family Trust holds a 13.5 percent stake in the airline, according to exchange data. Gangwal is, however, in the process of exiting the carrier.
Share performance
In the last six months, SpiceJet stock has rallied 24.51 percent, outperforming the benchmark Nifty 50. Despite the recovery in the stock in the last six months, it is trading below its 52-week high of Rs 43.30, hit in December 2022.
Q1 Results
For the April-June quarter, SpiceJet logged a net profit of Rs 205 crore, compared with a loss of Rs 789 crore in the corresponding quarter of last year, due to strong air travel demand. It also registered the industry's highest domestic load factor of 90 percent in the June quarter.
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