SpiceJet surges 18% on CCI nod to Ajay Singh's takeover

Shares of SpiceJet surged 18 percent intraday on Friday after Competition Commission of India (CCI) cleared Ajay Singh’s proposal to acquire a majority stake in the cash-strapped airline. With the CCI nod, the low-cost carrier's original promoter is closer to taking the management control and ownership of SpiceJet. The CCI is learnt to have approved the deal that would see Singh acquiring more than 58 percent stake in SpiceJet.

In an exclusive interview to CNBC-TV18, Singh said he is hoping to invest into SpiceJet by February 24.  He is likely to pump in Rs 400 crore in the airline as part of the first tranche of committed investment. Under the revival plan, Singh will acquire majority stake and control in the airline.

According to Singh, deal falls within purview of clauses which exempt him from making an open offer. He expects the second tranche of money to come in by March-end and the final tranche by April-end. “Recent sales have boosted SpiceJet’s confidence. We are seeing things stabilising now along with very few cancellations,” he added.

At 09:31 hrs SpiceJet was quoting at Rs 22.90, up Rs 2.95, or 14.79 percent on the BSE.