Shares of low-cost carrier SpiceJet surged on October 13 as ET Now reported that IndiGo’s co-founder Rakesh Gangwal was at advance stage of talks to buy a sizeable stake in the company.
Gangwal and his wife Shobha Gangwal hold 13.23 percent and 2.99 percent, respectively, in IndiGo operator InterGlobe Aviation, as of June-end, while their Chinkerpoo Family Trust holds a 13.5 percent stake, according to exchange data. However, Gangwal is in process to exit the company.
As of 3.15 pm, the stock was up abiut 20 percent on BSE to Rs 43.82.
Besides, a hearing in the Delhi High Court in its case against Sun Group chairman Kalanithi Maran also had a bearing on the stock. The case pertains to an arbitral award in favour of Maran.
In February 2015, Maran and KAL Airways, his investment vehicle, transferred their 58.46 percent in SpiceJet to Singh, who took on the airline’s liabilities of around Rs 1,500 crore. As part of the agreement, Maran and KAL Airways said they paid SpiceJet Rs 679 crore for issuing warrants and preference shares. Maran alleged that the warrants and preference shares were not allotted and initiated arbitration proceedings against SpiceJet and Singh.
In July 2018, an arbitration panel rejected Maran’s claim of damages of Rs 1,323 crore for not issuing warrants to him and KAL Airways but awarded him a refund of Rs 579 crore plus interest. SpiceJet was permitted to furnish a bank guarantee for Rs 329 crore and make a cash deposit of the remaining sum of Rs 250 crore.
SpiceJet in September said it has completed the payment of Rs 100 crore to former promoter Kalanithi Maran's KAL Airways. The airline noted that it had "made a payment of Rs 77.5 crore" on September 11 and the remaining payment of Rs 22.5 crore was completed on September 12.
It added that it acknowledges the legal process and is committed to complying with all court directives and obligations in the Credit Suisse matter and will make the payment of $1.5 million as per the court directive.
Till date, SpiceJet has paid a total of $8 million to Credit Suisse as per consent terms.
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